Thanks to livestock revenue, farm income will be stronger than expected
U.S. net farm income will be a much better than expected $140 billion this year, the fourth-highest total on record, forecast the Agriculture Department on Thursday. Production expenses are down for the first time since 2018, while farmers are pocketing increased revenue from eggs, cattle, milk, and broiler chickens.
Lower corn production costs in U.S. than in Brazil
Although the cost of production rose in both countries in 2023, U.S. corn growers have an advantage over their Brazilian rivals with lower per-bushel costs, said four agricultural economists at the farmdoc daily blog. The United States grows three times as much corn as Brazil, but Brazil is forecast to be the world’s top corn exporter for the second year in a row.
Farm income this year will be second-highest ever, says USDA
U.S. net farm income will be a stronger-than-expected $151 billion this year, the second-highest total on record, estimated the Agriculture Department on Thursday. That’s roughly $10 billion higher than the August forecast and due chiefly to cost cutting by producers, aided by lower fertilizer, fuel, and feed prices.
SNAP claims larger share of farm bill outlays
The new farm bill could cost nearly $130 billion a year — the highest price tag ever — with public nutrition programs getting more than $4 of every $5, wrote associate professor Roman Keeney in Purdue’s annual agricultural economics review. “The overall budget, and particularly spending on the nutrition title (primarily food assistance for low-income households), should continue to be the most politically divisive component of the farm bill debate.”
Higher costs for farmers when interest rates rise
If the Federal Reserve raises interest rates, "it will mean higher costs for many producers" at a point when farm income is falling and growers are making increased use of credit, says Brent Gloy at Agricultural Economic Insights.
Lower energy costs to save farmers $5 billion this year
"Lower energy prices are expected to lead to lower total production expenses by the agricultural sector," say USDA economists, with savings of $5 billion, or 8 percent, this year and $5 billion in 2016, also an 8-percent savings.
Financial struggle as farmers face tighter margins
Growers across the country face tighter margins due to the combination of high production costs and sharply lower commodity prices, a panel of farmers told a House Agriculture subcommittee. They asked for action against farm subsidies overseas and for continued federal support at home. "For many Texas producers, there is no room for error" this year, said Steve Verrett, a cotton grower and executive vice president of Plains Cotton Growers in Lubbock, Texas.