LINCOLN- Farm income is projected to decrease by 4% in 2024 compared to 2023, driven primarily by lower cash receipts from commodity crops, according to the U.S. Department of Agriculture’s December forecast. Net cash farm income, which accounts for income minus expenses, is estimated at $158.8 billion—3.5% lower than 2023 figures when adjusted for inflation but still 9.8% above the 20-year average. While overall agricultural commodity sales are expected to dip less than 1%, the decline in crop receipts by over 9% is nearly offset by an 8% increase in receipts from animal and animal products.

Carrie Litkowski, USDA Economic Research Service farm income team leader, emphasized the importance of these findings, saying, “It feels a little more important, as we near the end of the year, to evaluate the current state of the farm economy as a starting point for considering what challenges and opportunities may lie ahead for U.S. agriculture.” Crop-focused farms are forecasted to see reduced net cash income in 2024, whereas livestock farms are likely to experience gains. Iowa’s agricultural sector may feel a significant impact, as corn and soybean receipts—key drivers of the state’s farm economy—are projected to decrease by 23% and 14%, respectively, on a national level.

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