By Scout Nelson
Nebraska's agricultural sector is bracing for a dip in net farm income in 2024, following a banner year in 2023. According to the latest projections from the Rural and Farm Finance Policy Analysis Center and the University of Nebraska-Lincoln's Center for Agricultural Profitability, the state is expected to see its net farm income drop to $7.69 billion. This represents a 17% decrease, positioning 2024 as the third highest year on record for farm income in the state.
The detailed report, titled "Fall 2024 Nebraska Farm Income Outlook," highlights several contributing factors to the anticipated decline. A significant reduction of $1.64 billion in crop receipts, primarily from corn and soybeans, and a $0.90 billion drop in crop insurance indemnities are major elements. Although livestock receipts are projected to rise by $1.16 billion, this increase will not fully offset the losses in other areas.
The report also notes a slight increase in Nebraska’s cattle inventory, anticipated to grow by 164,000 head in 2024, buoyed by improving forage conditions across the state. This is expected to contribute positively to the livestock revenue.
On the expense side, while some costs such as feed, fertilizer, and fuel are projected to decrease, overall production expenses are predicted to rise due to higher costs for purchased livestock and rent. This mix of decreasing revenues and increasing expenses is posing a challenge for Nebraska's farmers, though opportunities for profitability remain, especially in the livestock sector.
Brad Lubben, an agricultural policy specialist with Nebraska Extension and a co-author of the report, emphasizes the dual nature of the current agricultural economy. "As producers are adapting to current market realities of falling commodity prices and rising production expenses, but the coming year presents challenges but also opportunities for long-term profitability," Lubben stated.
The collaboration between the Nebraska and Missouri universities underlines the importance of localized agricultural economic forecasts in complementing national projections provided by institutions like USDA and FAPRI-MU.
According to RaFF Director Alejandro Plastina, these projections are vital for informing policymakers, industry analysts, and agricultural practitioners about the sector’s health and its economic drivers.
Photo Credit: gettyimages-frankoppermann
Categories: Nebraska, Crops, Corn, Soybeans