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Missouri net farm income projected to decline in 2024

The decline is attributed to lower crop receipts and reduced crop acreage, though it remains the fourth-highest in state history.

Ukraine Wheat Field

Missouri's net farm income is expected to drop for the second consecutive year in 2024, according to the University of Missouri’s Rural and Farm Finance Policy Analysis Center (RaFF). The center’s Fall 2024 Missouri Farm Income Outlook projects a $697 million decline in net farm income, bringing it to $3.66 billion, a 16% reduction from the previous year. Despite the decrease, this figure still ranks as the fourth-highest net farm income in Missouri's history, following record-high years in 2022 and strong performances in 2021 and 2023.

The report attributes the projected drop primarily to a $1.66 billion decline in farm receipts, driven by lower crop receipts and crop insurance indemnities. Lower crop prices in 2023 and 2024 have led to reduced crop acreage, with over 1 million fewer acres in production this year.

Missouri’s livestock sector remains relatively stable, with receipts projected at $6.5 billion. However, declining cattle and hog inventories are expected to result in a 3% reduction in receipts for these sectors. On the positive side, the state’s overall production expenses are projected to decrease by 4% in 2024 due to lower costs for fertilizer, feed, seed, and fuel, with further reductions anticipated in 2025.

Looking ahead, the report forecasts continued contraction in Missouri’s farm income into 2025.

"Farm income is projected to decline in calendar years 2024 and 2025,” said Alejandro Plastina, director of RaFF and associate professor at the University of Missouri. "It will be critical for farmers and ranchers to take steps to protect their profit margins and secure liquidity to navigate the downturn. MU Extension offers resources to help with the planning process."

The Missouri Farm Income Outlook is part of RaFF's broader efforts to provide state-level farm income analyses, working with land-grant institutions across several states to deliver insights that help shape farm and rural economic policies in the U.S.

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