Multiple Factors Lead to Lower 2024 Farm Income Forecast

US farm income is forecasted down for this year. USDA Economist carry Carrie Litkowski.

“Net cash farm income for calendar year 2024 is forecast at $121.7 billion. That's about a 24% decrease from 2023. In nominal dollars, net farm income is forecast at $116.1 million, or about a 25 or 26% decline from 2023.”

Litkowski outlines factors behind the declining farm income-

“There are multiple factors that are contributing to this expectation for lower income, in 2024. First, cash receipts for both crop animal products are forecast to decline about 21 billion in 2024. Also, direct government payments are forecast to decrease almost $2 billion, and total production expenses are forecast to increase $16.7 billion dollars or almost 4%.”

How will this affect farm businesses?

“Through a simulation, we can look at how the sector forecast might affect farm businesses on average. So we are forecasting average net cash farm income for farm businesses to decrease 27% Following the sector forecasts for lower cash income to about $72,000 in 2024. On a positive note-

“The farm sector balance sheet remains relatively strong with farm sector assets debt and equity each forecast to increase in 2024 with equity forecast to increase about 5%.”