By Blake Jackson
A recent report by the University of Missouri's Rural and Farm Finance Policy Analysis Center (RaFF) paints a picture of declining net farm income for Missouri in 2024. The Spring 2024 Missouri Farm Income Outlook predicts an estimated $0.8 billion decrease compared to 2023.
"While production expenses are expected to go down slightly, lower market receipts and declining crop prices are the main factors impacting Missouri producers," explained Scott Brown, RaFF's interim director.
The report forecasts an 18% drop in net farm income for Missouri in 2024, compared to a projected national decline of 25.5%. Here's a breakdown of some key projections:
- Crop Receipts: A decrease of 11% is anticipated, driven by a 136,000-acre reduction in planted area, with a shift towards more soybeans and less corn.
- Livestock Receipts: These are projected to fall by 9%. However, a rebound in cattle and hog cash receipts is possible in 2025, fueled by increased marketings.
- Production Expenses: A welcome 5% decrease is expected, with fertilizer, feed, and fuel costs falling from recent highs. However, expenses for purchased livestock, seed, labor, taxes, and capital consumption are still projected to rise.
The report offers a glimmer of hope, predicting an increase in Missouri's net farm income for 2025 and 2026.
This Missouri Farm Income Outlook is part of a broader initiative by RaFF. They collaborate with land-grant universities in Arkansas, Kansas, Nebraska, and Texas to publish farm income projections for these states. Additionally, RaFF provides analyses for key Midwestern regions.
"These projections from RaFF, along with those from our partner institutions, provide valuable insights into farm financial indicators across a wider region," said Brown. "This information can be crucial for policymakers, industry stakeholders, and producers as they make informed decisions."
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Categories: Missouri, Education