Nebraska farm income projected to fall in 2024

Nebraska's net farm income is projected to fall to $6 billion in 2024 and average $6.3 billion per year across the next decade, according to a new report from the Rural and Farm Finance Policy Analysis Center (RaFF) at the University of Missouri, produced in conjunction with the Center for Agricultural Profitability at the University of Nebraska-Lincoln.

While U.S. farm income projections topped a 2021 record with a new record in 2022 before falling in 2023, Nebraska net farm income took a fall in 2022, to $6.6 billion, before partially rebounding in 2023, to $7.2 billion.

"Producers are feeling the pinch of declining farm income in 2023, with a further drop expected in 2024, but the projection to fall to $6 billion this year is a still a relatively strong farm income number, compared to the past decade and builds on a solid financial position for agriculture in the state as a whole," said Brad Lubben, an extension agricultural policy specialist with the Center for Agricultural Profitability and a contributor to the report.

The projected decline is attributed to a downturn in crop receipts in the state - due to lower crop prices in 2023 - that look to fall further in 2024. Livestock receipts grew in 2023 on the strength of cattle prices but look to decline in 2024 with reduced cattle marketings and further declines in other livestock commodities, the report said.

While production expenses remained high in 2023, the report projects that the costs of feed, fertilizer, and fuel, along with interest rates, are expected to drop in 2024, helping to offset some of the impact of lower commodity receipts in Nebraska.