Feb 12, 2024
Record drop in farm income is expected in 2024

Farmers can expect the largest recorded year-to-year dollar drop in net farm income in 2024. Income is estimated to be nearly $40 billion lower this year compared to 2023, down more than 25%. American Farm Bureau Federation (AFBF) economists analyzed the latest USDA data in a Market Intel.

Net farm income is the profit farmers see after paying for operating expenses. Two major factors are impacting income forecasts lower prices paid to farmers for crops and livestock, and increased costs for supplies. While these are early estimates and they could change throughout the year, USDA anticipates a decrease in net farm income, moving from $156 billion in 2023 to $116 billion in 2024.

“Farm families are suffering through the same economic hardships as all families in America,” Zippy Duvall, president for AFBF said. “High inflation is making the food farmers grow more expensive to produce, and is cutting into the income farm families rely on to pay bills, provide an education for their children, and reinvest in their community. We urge Congress to focus on bringing costs down and passing a new farm bill, both of which will help ensure farmers can continue meeting the needs of a growing nation.”

“Cash receipts for crop and livestock sales are expected to move from $507 billion in 2023 to $486 billion in 2024 for a loss of $21 billion (4%). The forecast decline in crop receipts explains nearly 80% of this difference, signaling a weaker incoming year for row crop prices,” the Market Intel explained.

Production expenses remain stubbornly high as well. Transportation, labor, pesticide and fertilizer costs are all hitting farmers’ bottom line. Production expenses are estimated to increase 4%, or $16.7 billion, in 2024, totaling $455 billion in 2024.

Read the full Market Intel here.



Be sure to check out our other specialty agriculture brands

produceprocessingsm Organic Grower

75 Applewood Drive, Suite A
P.O. Box 128
Sparta, MI 49345
frontdesk@greatamericanpublish.com
616.520.2137
Get one year of National Nut Grower in both print and digital editions.

Interested in reading the print edition of National Nut Grower?

Subscribe Today »