Farm Sector Profits Forecast to Fall in 2024

Net farm income, a broad measure of profits, is forecast at $149.7 billion in calendar year 2024, down by $6 billion, or 4.1%, relative to 2023.  Inflation-adjusted farm income is forecast to drop by $9.5 billion, which comes out to 6.3%.  Despite the predicted decline, net farm income in 2024 would be 16% above the 20-year average [$121.4 billion].

Cash receipts from the sale of agricultural commodities are forecast to decrease by $4 billion, 0.8%, from 2023 to $516.9 billion in 2024.  Total crop receipts are expected to drop by $25 billion, or 9%, from 2023, led by lower receipts for corn and soybeans.  Direct government payments are forecast to fall by $1.7 billion, roughly 13.6% from 2023 to $10.6 billion in 2024.  Total animal product receipts are expected to increase by $21 billion, or 8.4% following increases in the receipts for cattle, calves, eggs, milk, broilers, and hogs.

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