(NAFB.com) – Events of the last three months have had large impacts on agricultural markets.

The war in Ukraine, drought in South America, and other developments have resulted in sharp commodity price increases. The Food and Agricultural Policy Research Institute at the University of Missouri says that resulted in higher farm receipts and costs and higher food prices.

The April snapshot says those factors are all higher than what got reported during the 2022 baseline outlook in January. Projected harvest prices are much higher, with corn prices over $6 a bushel, wheat over $8 a bushel, and soybeans above $14 a bushel. Livestock sector prices will get boosted by lower 2022 production than previously expected and strong demand. Avian Influenza will reduce the number of laying hens and egg production. Higher production expenses than previously projected now show a $55 billion increase in production costs.

The projected net farm income is almost the same as in 2021.