Farm income decline hits hard in 2024
Farmers are grappling with a difficult situation in 2024. After two years of declining crop prices, they are experiencing losses on every acre they plant. Crops like corn, wheat, soybeans, and cotton have all seen price drops, with corn down 37%, wheat down 37%, soybeans 28%, and cotton 22%. While crop prices have fallen, the cost of farming, such as fuel and fertilizer, remains high, increasing production costs by nearly 30% compared to 2020.
This means many farmers are facing financial strain, with some even losing money on the best cropland. According to data from the Farm Business Farm Management program, farmers growing corn and soybeans on prime land could lose around $90 per acre between 2023 and 2025. These deep and extended losses are unsustainable for many.
Furthermore, the traditional safety nets designed to help farmers during tough times are no longer as effective. Programs like the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) haven’t kept up with inflation, which has eroded the support they provide. The prices referenced in the 2014 farm bill no longer reflect the reality of today’s farming costs, leaving farmers with minimal assistance.
Farmers are also facing a decline in overall net income, which has dropped by $41 billion, or 25%, in just two years. This decline is even sharper in the row crop sector. The agricultural industry, especially in crop farming, is in a recession, with thousands of layoffs across the agribusiness sector.
Without a new farm bill, farmers are struggling to access credit and may be at risk of losing their farms. The future of farming depends on timely economic aid and effective policy changes.
Photo Credit: gettyimages-dszc