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Shining Light on Farm & Food Policy for 20 Years.
Tuesday, October 08, 2024
The Agriculture Department has sharply raised its forecast for farm earnings this year, projecting that net farm income will fall by close to 7% from 2023, a far smaller decline than USDA economists had estimated in February.
Farm equipment suppliers such as Deere & Co. have been shedding jobs and other agribusiness giants are reporting weaker business prospects in North America, a potential harbinger of continued softness in farm income as producers head out to harvest crops this fall.
The Agriculture Department's latest Farm Income Forecast projects net farm income will fall this year amid higher production expenses, lower cash receipts and declining direct government payments.
Leaders of U.S. agribusiness giants expect the farm economy to remain relatively strong through next year despite higher interest rates and softening commodity markets.
Bolstered by strong commodity prices, U.S. farm earnings should stay well above historic levels this year even as producers grapple with high production costs and the government’s pandemic relief phases out, the Agriculture Department reports.
Measures of farm income this year will reach their highest levels since 2013 and 2014 on the surge in government aid through coronavirus relief and trade assistance, the Agriculture Department says.
Some big 2021 unknowns persist, including how COVID-19 will continue to disrupt markets and demand, whether government payments will continue to be robust and whether or not U.S. farmers can pivot to gathering more of their income from the marketplace.
