U.S. farm incomes are expected to fall again in 2024 and many farmers find themselves facing tighter budgets for next year. The underlying issue is that input costs—the expenses for things farmers need to grow grains, such as fertilizer and farm equipment—remain high. As a result, farmers are being squeezed, even after harvesting a record-size crop this year.
“It’s very real,” said Russell Boening, president of the Texas Farm Bureau and a producer of corn, sorghum, and wheat at his over 4,500 acres farm in Wilson County, Texas, which is south of San Antonio. “It’s real across the country, but probably more in Texas than in other states.”
This year marks the second year of declines for farmers’ coffers. In a report Tuesday, the USDA forecasted net farm incomes for 2024 to fall 4% from 2023, totaling $140.7 billion. This comes after farm incomes dropped nearly 20% in 2023 from a record high in 2022.
The USDA said that it forecast total cash receipts for corn and soybeans to fall, with the money generated from corn sales declining by nearly 21%. Soybean receipts are expected to drop by over 12%.
Source: WSJ