Gary Schnittkey discusses the dry growing season in the Midwest, with little rainfall in May and June leading to drought conditions. Although there have been recent rains, a large part of the Midwest is still experiencing rainfall deficits. Corn prices initially increased on drought concerns, but after the rains, they fell back to around five dollars. While the market may have eliminated the chance of a large-scale drought in 2023, there is still a significant chance of lower-than-trend yields. Farm incomes for 2023 are projected to be around $81,000 per farm (1500 acre farm), which is similar to the average from 2014 to 2019 and lower than the near-record incomes of the past two years.
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