The USDA released its February 2024 Farm Income and Financial Forecasts. It’s the agency’s first income prediction for the new year.
Carrie Litkowski, an economist with the Economic Research Service, says farm income is forecast to fall roughly 25 percent this year.
“Starting with profits for the farm sector as a whole which are forecast to decline in 2024. Net cash farm income for calendar year 2024 is forecast to fall 24 percent relative to 2023 in nominal dollars, and net farm income is forecast to fall almost 26 percent.”
Litkowski talks about some of the factors behind the income drop.
“Cash receipts from crops and animal product sales, which are expected to decrease $21 billion, or four percent, in 2024. Also, direct government payments are forecast to decrease almost $2 billion, or 16 percent, and total production expenses are forecast to increase almost $17 billion or four percent.”
She talks about 2024 farm sector balance sheet.
“Farm sector assets, debt, and equity are each forecast to increase, with equity forecast to increase 4.7 percent. We’re forecasting net average net cash farm income for farm businesses will decrease 27 percent in 2024, so that’s 72 thousand dollars.”
Litkowski says median farm income is predicted to be similar to last year.
“For those households that operate our farms, the median total farm household income is forecast to hold relatively steady at $99,445. Again, that’s just the median.”
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