Nebraska farm income to dip in 2024 amidst market shifts

By Scout Nelson

The latest report from the Rural and Farm Finance Policy Analysis Center at the University of Missouri, in collaboration with the University of Nebraska-Lincoln's Center for Agricultural Profitability, projects a dip in Nebraska's farm income to $6 billion in 2024.

This projection comes after a partial rebound to $7.2 billion in 2023, following a previous year's decline.

According to Brad Lubben, a policy specialist at the Center for Agricultural Profitability, this forecasted drop in income, though significant, is seen against the backdrop of a relatively strong past decade for Nebraska agriculture.

The state's farmers are navigating a period of decreased income due to lower crop prices and livestock receipts anticipated for 2024. Specifically, crop receipts are expected to reduce by 7%, influenced by lower commodity prices.

In detail, corn production is facing a reduction in planted acreage by 240,000 acres in 2024, yet an anticipated return to average yields could bolster production levels. Despite this, lower market prices for corn are projected to decrease receipts by $1 billion in 2024.

On the other hand, soybean acreage is expected to increase by 472,000 acres from 2023, with higher yields on the horizon. Declining prices will slightly lower soybean income next year.

The livestock sector is not immune to these challenges. After a reduction in cattle and calf inventory during 2023, slight growth is forecasted for 2024, thanks to better forage conditions.

Despite this, cattle and calf receipts are anticipated to fall by approximately $0.7 billion in 2024, with total marketings projected to decline nearly 6% from the previous year. Cattle prices are expected to peak in 2026, with marketings beginning to rise in 2025.

This spring 2024 farm income outlook provides crucial insights for Nebraska's agricultural community, indicating a need for strategic planning in the face of shifting market conditions and production costs.

The collaboration between Nebraska and Missouri's research centers highlights the importance of regional expertise in developing accurate and actionable agricultural forecasts.

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