In its December report, the USDA projects 2024 net farm income at $140.7 billion. This is a $6 billion drop from 2023. It does reflect a smaller decline than the $35.3 billion decrease from 2022 to 2023.

Net cash farm income is estimated at $158.8 billion. This is down 1.1% from last year due to increased grain sales from surplus inventories. Crop receipts are expected to drop by $25 billion, driven by lower corn and soybean prices. Livestock receipts may rise by $21 billion, with cattle prices contributing significantly.

Direct government payments, excluding crop insurance and loans, are forecast to decline by 13.6%. This is mainly due to reduced Dairy Margin Coverage payments.

Farm sector equity is anticipated to grow by 5.2% to $3.68 trillion in nominal terms despite rising debt levels. Asset appreciation outpaced debt.

Read more on the latest USDA forecast for farm income here.