USDA report confirms drop in farm income

Dec 04, 2024
By Farms.com

2024 Farm income decline driven by lower crop earnings

The USDA’s December Farm Income Report reveals a 4.1% decline in net farm income for 2024, slightly improved from the September estimate of 4.4%.

This reduction reflects significant financial challenges in the agricultural sector, emphasizing the need for stronger support and updated policies.

Major crop sectors like corn and soybeans are expected to experience the largest declines, while livestock producers, especially in cattle and eggs, reported slight income gains. Production expenses are forecasted to drop by $8 billion, offering limited relief amidst challenging conditions.

Natural disasters, such as hurricanes, have compounded financial difficulties for farmers, with limited congressional action and outdated farm bill programs further complicating recovery efforts. Government payments have decreased by 12.3% from last year, reflecting reduced ad-hoc disaster relief.

The report stresses the need for comprehensive policies to support farmers and address the impacts of climate-related challenges.

As farmers prepare for 2025, collaborative action from policymakers and stakeholders will be crucial in stabilizing the agricultural economy and reducing future risks.

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!