The most recent forecast from the U.S. Department of Agriculture (USDA) projects 2024’s net farm income to be 25% lower than last year, according to Wisconsin Public Radio.
In 2022, farm profitability hit a record high of $185.5 billion nationally; the number declined by 16% in 2023; and the expected 25% decline this year brings net farm income only slightly under the 20-year average level.
Lower price forecasts for crops, milk, and most livestock will contribute to lower projected income for farmers selling commodities. Their labor costs are also projected to be 7% higher than last year; labor costs rose by 5% in 2023.
Fuel costs are expected to decline, which will help crop farmers cut back on expenses. However, fears about this winter’s lack of precipitation persist, outweighing many farmers’ concerns over commodity prices.
