The USDA’s latest Farm Income Forecast indicates a challenging year ahead for many American farmers. Cash receipts for 2024 are projected to drop significantly for major crops like wheat, soybeans, corn, and cotton. Cotton is expected to suffer the steepest decline, with receipts plummeting nearly 30%. USDA Chief Economist Seth Meyer notes cotton prices have dropped from an initial projection of 80 cents per pound to just 66 cents, a substantial decrease that could impact producers heavily.
U.S. Department of Agriculture
Other row crops are also seeing major setbacks. Wheat receipts are projected to fall by 9%, soybeans by nearly 14.5%, and corn by more than 22.5%. These declines reflect broader market trends affecting farmers across the country, particularly in the Midwest.
However, the forecast isn’t bleak for all sectors. Specialty crops like fruits and nuts are anticipated to fare better, with some seeing slight increases in cash receipts. Meyer highlighted these differences, noting that not all crops are experiencing the same downturn.
Overall, net cash farm income for 2024 is forecast at $158.8 billion, a 1.1% drop from 2023. Net farm income is expected to decline by 4.1%, reaching $140.7 billion. These figures underline the economic pressures facing farmers as they prepare for the upcoming year.
Despite challenges, some sectors show resilience, offering a silver lining amid economic headwinds.
Read the full U.S. Department of Agriculture, Economic Research Service. (2024, December 3). Farm sector income & finances: Farm sector income forecast.
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.