Cash cropper margins could be the worst in 20 years, according to a writer for the AgWeb news site.
“The margins that farmers are facing on average are really a tough place to be in for 2022 to 2024,” said Krista Swanson, lead economist for the National Corn Growers Association.
“According to USDA (United States Department of Agriculture), the cost to produce corn dropped five per cent, but the price was down by 37 per cent.
“And when we look at those average numbers from the USD, looking at cost of production for corn prices and yield, that comes out to average losses of $125 per acre.”
USDA’s revised Net Farm Income projections, released in early September, show net cash farm income for the 2024 calendar year will fall by $12 billion, which is down about seven per cent from 2023, and net farm income will fall by $6.5 billion or 4.4 per cent.
This is compared to projections released in February which suggested net farm income would fall by 26 per cent.
