Equipment Finance News
  • News
  • Event
  • Data
  • Features
  • Lender Directory
  • PodcastNew
  • WebinarsNew
    • Webinar Library
Log In
No Result
View All Result
  • Dealers
  • Lenders
  • Transportation
  • Agriculture
  • Construction
  • Materials Handling
  • Rentals
  • Compliance
  • Data Analysis
Equipment Finance News
  • News
  • Event
  • Data
  • Features
  • Lender Directory
  • PodcastNew
  • WebinarsNew
    • Webinar Library
No Result
View All Result
Equipment Finance News
No Result
View All Result

Net farm income forecast down 4%

Farm Financial Performance Index hits 2024 high

Johnnie Martinez IIbyJohnnie Martinez II
December 5, 2024
in Agriculture
Reading Time: 3 mins read
0
Share on FacebookShare on LinkedIn

December’s farm income forecast reveals what a challenging year it has been for American agriculture, projecting a continued decline in net farm income as receipts and government payments continue to decline while expenses continue to rise. 

Income for 2024 is estimated at $140.7 billion, down 4.1% from 2023 and 22.6% from the 2022 peak, according to the United States Department of Agriculture. Adjusted for inflation, the year-over-year decline deepens to 6.3%, reflecting significant strain, particularly for crop farmers, Daniel Munch, economist at American Farm Bureau Federation, said in a market intel report. 

“USDA’s December report underscores the volatility of the U.S. farm economy as farmers face their second consecutive year of declining income,” he said. “Net farm income in 2024 remains nearly 25% below its 2022 peak, and the minimal upward revisions since September offer little reprieve from the financial pressures farmers are enduring.” 

Net farm income 2024 December forecast

Total crop receipts are expected to drop to $246.2 billion, down 9.2% YoY, driven by declining global demand and competition. Major crops like corn, soybeans and cotton face sharp revenue losses, with corn receipts down 20.8%, but small gains in vegetables and rice offer limited relief, Munch said. 

“Crop producers, in particular, face dramatic declines in cash receipts, with little hope for immediate relief as global supply chain disruptions continue and prices for key commodities remain depressed,” he said. “Rising production costs threaten to erode profitability across the board.” 

Meanwhile, production expenses are expected to fall to $453.9 billion, down 1.7% YoY, but rising labor costs, up 6.1% YoY, and interest costs, up 4.1% YoY, offset these savings, according to the release. Government support is also projected to decline, with subsidy payments dropping to $10.6 billion, down 13.6%, exacerbating farmers’ financial stress. 

Farm Financial Performance Index hits 2024 high 

While the USDA forecasts a decline in net farm income and an overall down performance in farm economics for 2024, November’s Farm Financial Performance Index compiled by the Center for Commercial Agriculture at Purdue University, hit 116, its highest value for the past 12 months and the second highest value for the past two years. It is up 16 points month over month and 11 points YoY, Michael Langemeier, associate director at the Center for Commercial Agriculture at Purdue University, told Equipment Finance News. 

“There’s so much more optimism in the long term, and [farmers] are looking at that more long term with this new policy environment that it’s going to be,” he said. “It’s going to be a better environment for production agriculture in the next five years, and they’re not necessarily thinking that short term, because the fundamentals really haven’t changed for the next year.” 

Farm Financial Performance Index Nov. 2024

Farmers anticipate policy changes during a second Trump administration to provide similar benefits to those during Donald Trump’s first term, Langemeier said. During the first term, increased estate tax limits, decreased regulations and 100% bonus depreciation all benefited farmers. 

The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here. 

Tags: commercial financingequipment financefarm profitsUSDA
Previous Post

Federal Reserve economist Martin Lavelle returns to Equipment Finance Connect

Next Post

Section 1071 hangs in balance amid political shift

Related Posts

In-cab SenseApply Technology being used in the field for farming tech
Agriculture

CNH launches precision farming tech to boost efficiency and sustainability

June 12, 2025
A farmer operates a Deere & Co. combine to harvest soybeans in Santa Cruz do Rio Pardo, Sao Paulo state, Brazil, on Saturday, March 7, 2020. Soybean and corn futures slumped as the tumbling real boosted the allure of exports from crop giant Brazil, while coronavirus woes weighted on commodity markets.
Agriculture

Deere eyes Brazil machinery sales beating Europe in coming years

June 11, 2025
John Deere equipment for sale at a United Ag and Turf dealership in Colchester, Connecticut, US, on Friday, Nov. 3, 2023. Deere & Co. is expected to release earnings figures on November 22.
Agriculture

CNH, Deere ‘aggressive’ with early order programs

June 9, 2025
Next Post
man with compliance in foreground and ipad

Section 1071 hangs in balance amid political shift

Proud Member Of

Check Out Our Industry Event

Stay Informed With Our 8 Newsletters

The Dig Podcast

Dealer Operations

Listen: How Anderson Equipment is managing and protecting data

Financial stability brightens Anderson Equipment’s 90th anniversary

June 13, 2025
Tech investment set to grow in 2024

IronConnect launches DealerFlow platform to maximize returns

June 12, 2025
John Deere signage at a United Ag and Turf dealership in Colchester, Connecticut, US, on Friday, Nov. 3, 2023. Deere & Co. is expected to release earnings figures on November 22.

Deere, Toro opportunistic with capital during market slowdown

June 10, 2025
  • About Us
  • Advertise
  • Contact Us
  • Privacy Terms
  • ADA Compliance

 Manage Cookie Consent

Connect with us

© 2025 Royal MediaRoyal Media

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • News
    • All News
    • Dealers
    • Lenders
    • Transportation
    • Agriculture
    • Construction
    • Material Handling
    • Rentals
    • Compliance
    • Data Analysis
  • Event
  • Data
  • Features
  • Lender Directory
  • Podcast
  • Webinars
    • Webinar Library

© 2025 Royal MediaRoyal Media

THIS WEBSITE USES COOKIES

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “I CONSENT”, you consent to the use of ALL the cookies.

Cookie settingsI CONSENT

Review our Cookie Policies
.
Manage Cookie Consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Save & Accept