The excess supplies of crops coupled with those lower prices could lead to a year of lower farm income.
The USDA is predicting net farm income to be $116 billion this year, which is down 25.5 percent from 20-23. Chief economist, Seth Meyer hopes producers have been preparing
during these last good income years, but says close tabs are going to have to be kept on costs.
“Refocus on what inputs am I putting on my crop for $4.50 corn versus $6.50 corn? So I think we’ll see some producers try to make some adjustments in that way as we do every time. You know, producers say. What’s economically viable for these inputs based upon the output price I might expect?”
The USDA expects production expenses to rise by almost 4 percent, while cash receipts will drop by 4 percent.
