Tom Vilsack Announces 2024 Farm Sector Income Forecast: Key Insights from USDA’s ERS
WASHINGTON, Sept. 5, 2024 – Agriculture Secretary Tom Vilsack today commented on the Economic Research Service’s 2024 Farm Sector Income Forecast, highlighting key findings and implications for the agricultural sector.
“The latest forecast indicates a decrease in farm sector income from the record highs of 2022. However, 2024 is poised to conclude a four-year cycle of net farm income that exceeds the 20-year average. It’s important to note that in the years leading up to this period, net farm income remained at or below the historical average, even prior to the disruptions caused by the COVID-19 pandemic,” Vilsack stated.
Despite a slight easing in input costs, crop producers still face challenges as the industry works to recover from market shocks like the ongoing conflict in Ukraine. On a positive note, this new forecast presents a more optimistic outlook compared to the previous one released in February. It projects increased income for livestock producers and anticipates reduced production expenses driven by lower costs in feed, fuel, and fertilizer, which will help counterbalance declining commodity prices. Additionally, farmers’ equity in their operations has risen by 2.7% since last year, reflecting growth in their overall financial standing.
Nevertheless, the report reveals that 90% of farming households rely on off-farm income to support their livelihoods, a situation that should concern everyone in rural America as it contributes to the ongoing consolidation and loss of family farms that has been evident since the 1980s. The Biden-Harris Administration is dedicated to creating a system where family farms serve the families that operate them, rather than the reverse. Our commitment to climate-smart conservation, renewable energy initiatives on farms, domestic fertilizer production, expanded local meat processing, and support for organic markets is aimed at building a more resilient and diversified food and agriculture sector, enabling all farms to succeed—not just the top earners. Moreover, enhancing access to crop insurance is critical in light of increasing natural disasters and global market disruptions. The upcoming Farm Bill must continue this commitment to investing in farms of all sizes and shift focus away from the perilous ‘get big or get out’ mentality.”
#
The USDA is an equal opportunity provider, employer, and lender.
Sophie Müller completed her studies at ETH Zurich in Switzerland, earning a degree in Environmental Sciences with a concentration in agroecology. Her research explored the interactions between crops and their environment, particularly in relation to organic farming systems. Sophie is now a research scientist, focusing on agroecological practices that promote biodiversity and reduce environmental impact in agriculture.