Farmers in 2024 could be facing a decline in profits for the second year in a row.
Net farm income, a broad measure of farmer profits, is forecasted to fall 25.5% year over year in 2024 to $116.1 billion, according to the U.S. Department of Agriculture (USDA) Farm Income Forecast.
2024 would mark the second straight year of profit declines, according to the USDA. Farm profits are expected to fall by 16% YoY in to $155.9 billion.
Falling commodity prices led by corn and soybeans, lower animal and animal product receipts and a reduction in direct government payouts contributed to the forecasted 2024 decline, the USDA said.
- Total crop receipts are forecasted to fall by 6.3% YoY to $245.7 billion;
- Total animal and animal product receipts are expected to hit $239.8 billion, a 1.9% YoY drop; and
- Direct government farm payouts are forecast to fall 15.9% YoY to $10.2 billion, according to the USDA.
The less-than-rosy outlook comes at a time when aging agriculture equipment inventory continues to build on equipment dealers’ lots. In fact, farm equipment inventory rose by 26.5% YoY in December , according to Sandhills Global.
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