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U.S. Department of Agriculture, Economic Research Service. (2024, September 5). Farm Household Well-being: Farm Household Income Forecast,
Median Income of Farm Operator Households Forecast To Increase in 2024
Median total farm household income decreased slightly in 2023 to $97,984 from $98,015 in 2022. Household income is forecast to increase to $99,683 in 2024; a nominal increase of 1.7 percent relative to 2023, but a decrease of 0.7 percent after accounting for inflation.
Farm households typically receive income from farm and off-farm sources. Median farm income earned by farm households decreased to -$900 in 2023 from -$800 in 2022 and is forecast to increase slightly in 2024 to -$834. Many farm households primarily rely on off-farm income. Median off-farm income in 2023 declined to $79,900 from $82,045 in 2022. In 2024, off-farm income is forecast at $82,796, an increase of 3.6 percent (1.1 percent after inflation) relative to 2023. Since farm and off-farm income are not distributed identically for every farm, median total income will generally not equal the sum of median off-farm and median farm income.
Household income is forecast to increase to $99,683 in 2024; a nominal increase of 1.7 percent relative to 2023, but a decrease of 0.7 percent after accounting for inflation. Farm households typically receive income from farm and off-farm
off-farm
Off-farm (non-farm) income refers to the portion of farm household income obtained off the farm, including nonfarm wages and salaries, pensions, and interest income earned by farm families.
After decreasing by $35.6 billion (19.5 percent) from 2022 to $146.5 billion in 2023, net farm income in 2024 is forecast to decrease $6.5 billion (4.4 percent) to $140.0 billion.
“Direct government payments will contract again in 2024. And that gives you an overall kind of direct government payment intervention total there. Below the long-run average, USDA says payments are expected to decline by $2 billion, or 16% less than last year to a little over $10 billion in payments this year.”
What is the potential income from a 40-acre farm? The income you can make from farming 40 acres depends on location, current market, and the type of crops and livestock. If you make the right choices, expect to earn a few hundred thousand from your operations.
Compared with last year, planted acreage is expected to be down or unchanged in 31 of the 48 estimating States. Area harvested for grain, at 83.4 million acres, is down 4 percent from last year. Soybean planted area for 2024 is estimated at 86.1 million acres, up 3 percent from last year.
Adjusted for inflation, the USDA predicts farm income will drop by $43 billion due to lower commodity prices, higher expenses for labor and lower government payments.
The director of the University of Missouri's Food and Ag Policy Research Institute says lower crop prices take most of the blame for a continued decline in net farm income. Pat Westhoff tells Brownfield there's lower crop prices across the board.
The most recent Farm Sector Income Forecast from the U.S. Department of Agriculture (USDA) shows net farm income expectations at $140 billion, a 23% decline since 2022. “The drop in net farm income is not just an economic hiccup.
On Nov. 16, 2023, President Biden signed into law H.R. 6363, the Further Continuing Appropriations and Other Extensions Act, 2024, which extended the Agriculture Improvement Act of 2018, more commonly known as the 2018 Farm Bill. This extension allows authorized programs to continue through Sept.
Gross farm income reflects the total value of agricultural output plus Government farm program payments. Net farm income (NFI) reflects income after expenses from production in the calendar year and is calculated by subtracting farm expenses from gross farm income.
On November 15th, the Senate voted to pass a House bill for a continuing resolution, which included an extension of the 2018 Farm Bill. The bill extends the farm bill through September 2024. President Biden is expected to sign the bill into law.
Dairy Farming: Dairy farming is one of the most profitable agricultural business ideas. Aside from milk, it also produces manure. There is a high demand for organic dairy products all year round such as milk, cheese, curd, cream and so much more.
Saffron. Saffron is called red gold for a reason. The market value for it is higher than almost every other crop on the planet. It is not the easiest plant to grow, because it requires attentiveness.
Government payments to the farm sector averaged $16,308 for those operations receiving payments, accounting for about five percent of gross cash income and seventeen percent of net cash income in 2022 for those farms.
A minimum credit score of around 620 (credit score requirements might vary per borrower) A debt-to-income (DTI) ratio of 41% or less. Have an income no higher than 115% of the median household income in your area. Be financing a primary residence in a USDA-approved location.
Introduction: My name is Horacio Brakus JD, I am a lively, splendid, jolly, vivacious, vast, cheerful, agreeable person who loves writing and wants to share my knowledge and understanding with you.
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