Nebraska farm income surges to record $9.27 billion

Thursday, September 19, 2024

The USDA Economic Research Service (ERS) reported that Nebraska’s net farm income surged to a record-setting $9.27 billion in 2023, a significant increase of $2.67 billion or 40 percent from 2022. This record level exceeded the previous high of $8.044 billion set in 2021 by more than $1 billion. Agricultural economists from the University of Nebraska and the University of Missouri had predicted last year’s income would be around $7 billion, making the new figures a surprising development.

The rise in Nebraska’s farm income marks the fifth increase in the last six years, with the state’s 40 percent growth second only to Oklahoma’s 44 percent increase. Nebraska was among just six states to experience income growth in 2023, while the national net farm income declined by 20 percent.

Livestock Sector Boosts Income:

The livestock sector was the primary driver of Nebraska’s income growth, with livestock receipts exceeding $18 billion for the first time, an increase of more than $2 billion from 2022.

Record-high cattle prices played a crucial role in this surge. Combined crop and livestock receipts reached a record $32.1 billion, making it the second consecutive year these receipts surpassed $32 billion. Nebraska’s receipts were the fourth highest in the nation, trailing only California, Iowa, and Texas.

Expenses and Government Payments:

Lower feed expenses, down by 24 percent, helped livestock producers increase profitability. While expenses for other inputs such as fertilizer, fuel, and electricity were up slightly by one percent, overall expenses rose by just three percent. This was a much smaller increase compared to previous years. Additionally, government payments contributed $624 million to the state’s income, up by $65 million from 2022.

Looking ahead, the ERS projects a four percent decline in U.S. net farm income for 2024. Nebraska’s updated farm income estimates are expected this fall, but it’s unlikely that the record $9 billion figure will be matched again this year.

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