The U.S. Department of Agriculture (USDA) is expecting another decline in farm income in 2024, after a record high in 2022. Net cash farm income, which is what farmers make after expenses, is expected to decrease by $16.3 billion. That makes a 9.6 percent decline. Net farm income, which includes non-cash items like inventory changes, is also forecasted to fall by 6.8 percent to $10.2 billion.
“While the projection shows a decline from the 2022 record high, 2024 is expected to close out a four-year streak of net farm income that’s above the 20-year average,” Agriculture Secretary Tom Vilsack said in a news release. “For the prior four years, net farm income was consistently at or below that historic average, even before the COVID-19 pandemic.”
Lower crop receipts are a big reason for the drop, but falling production costs including feed, fuel, and fertilizer will help soften the impact. The report also stresses that 90 percent of farm households still rely on off-farm income.
Listen to the report below.
Brian German
Ag News Director / AgNet West