Show-Me State Times

Missouri's net farm income is expected to decline for the second consecutive year in 2024, according to a report by the University of Missouri’s Rural and Farm Finance Policy Analysis Center (RaFF). The bi-annual report evaluates various financial indicators related to agriculture in Missouri, including cash receipts and production statistics, to project the state's net farm income.

The report anticipates a $697 million decrease in net farm income, bringing it down to $3.66 billion in 2024. Despite this decline, it remains the fourth highest on record for Missouri. Previous years saw higher figures with 2022 setting a record high.

Farm receipts are projected to drop by $1.66 billion, primarily due to reduced crop receipts and crop insurance indemnities. The RaFF report predicts a 16% decrease in Missouri's net farm income compared to a 6.2% decline at the national level as estimated by Mizzou’s Food and Agricultural Policy Research Institute.

Key findings from the fall 2024 Missouri Farm Income Outlook include an anticipated $1.4 billion reduction in crop receipts attributed to lower prices leading to decreased acreage under production. Additionally, cattle and hog inventories are expected to shrink, resulting in a combined 3% reduction in their receipts. Nevertheless, livestock receipts overall are stable at $6.5 billion due to increases in other areas.

Production expenses are forecasted to decrease by 4% as costs for fertilizer, feed, seed, and fuel fall. Further reductions are anticipated into 2025.

Looking ahead, the report indicates continued contraction of Missouri's net farm income into next year. This analysis is part of several state-level reports published by RaFF alongside institutions from Arkansas, Kansas, and Nebraska.

"Unfortunately, farm income is projected to decline in calendar years 2024 and 2025," stated Alejandro Plastina, associate professor of agricultural finance at Mizzou’s College of Agriculture, Food and Natural Resources and director of RaFF. "It will be critical for farmers and ranchers to take actionable steps to protect their profit margins and secure sufficient liquidity in order to get through the downturn."