Production costs not likely to come down before next spring

Sue Roesler
Oct 7, 2024
Oct 7, 2024

Net farm income projection — : Inputs and other costs of production are not likely to come down before next year’s planting season. 2024 has been a weaker year for net farm incomes compared to 2023, according to the USDA.

Facebook
Twitter
Bluesky
WhatsApp
SMS
Email
Print
Save

Most agriculture production costs probably won’t be coming down prior to the 2025 planting season, and USDA is reporting that 2024 is projected to be a weaker year in terms of net farm income compared to 2023, according to Bryon Parman, NDSU ag finance specialist.

kAm%96 &$sp AFED @FE 2 C6A@CE @? E96 &]$] ?6E 72C> :?4@>6 2?5 ?6E 42D9 72C> :?4@>6 AC@;64E:@?D W25;FDE65 7@C :?7=2E:@?X EH:46 2 J62C[ 2?5 E96 C6A@CE E92E 42>6 @FE :? $6AE6>36C H2D “2 3:E F?:BF6]”k^Am

kAm“%96 $6AE] d C6A@CE WC6=62D65 @? pF8] acX H2D 2 3:E F?:BF6 7C@> E96 DE2?5A@:?E E92E EJA:42==J E96 C6G:D:@?D E@ E96 AC6G:@FD 6DE:>2E6 2C6 ?@E 2D 5C2>2E:4 2D E96J H6C6 :? E9:D =2DE @?6[” !2C>2? D2:5 5FC:?8 E96 $6AE6>36C }s$& p8C:4F=EFC2= |2C<6E $:EF2E:@? 2?5 ~FE=@@< (63:?2C]k^Am

kAm%96 62C=:6C C6A@CE H2D C6=62D65 @? u63] f[ a_ac[ 2?5 :E AC@;64E65 a_ab ?6E 72C> :?4@>6 2E S`e_ 3:==:@?[ H9:=6 E96 a_ac ?6E 72C> :?4@>6 H2D AC@;64E65 2E S``e 3:==:@? – 2 D:8?:7:42?E 492?86 :? 72C> :?4@>6 AC@;64E:@?D]k^Am

kAmw@H6G6C[ :? E96 $6AE6>36C C6A@CE[ E96 a_ab ?6E 72C> C6A@CE H2D C6G:D65 5@H? ?62C=J S`_ 3:==:@? E@ S`d_ 3:==:@?[ H9:=6 E96 a_ac ?6E 72C> :?4@>6 AC@;64E:@? H2D :?4C62D65 7C@> S``e 3:==:@? E@ S`c_ 3:==:@?]k^Am

kAm“x? u63CF2CJ[ &$sp H2D E9:?<:?8 :E H2D 8@:?8 E@ 36 23@FE S`e_ >:==:@? E@ 4=@D6 @FE =2DE J62C] q642FD6 E96C6 H6C6 2 =@E @7 4C@AD E92E 925?’E 366? AC:465 J6E – 2 =@E @7 :E H2D 4@C? E9@F89 E92E 925?’E 366? AC:465 J6E 3642FD6 AC:46D 7@C 4@C? W2?5 @E96C 4C@ADX H6C6 72==:?8 – &$sp H@F?5 FA 92G:?8 E@ 8@ 324< 2?5 C6G:D6 9@H H6== E96J E9@F89E H6 5:5 :? a_ab[ 7C@> S`e_ E@ S`d_ 3:==:@?[” !2C>2? D2:5]k^Am

kAm!2C>2? D2:5 E96 8@@5 ?6HD H2D E92E &$sp 5:5 C6G:D6 E96 a_ac ?6E 72C> :?4@>6 AC@;64E:@?] $:I >@?E9D 28@[ :? E96 u63CF2CJ C6A@CE[ E96 AC@;64E:@? 7@C a_ac H2D S``e 3:==:@? 7@C ?6E 72C> :?4@>6] &$sp 92D C6G:D65 E92E C646?E=J E@ S`c_ 3:==:@? – 2 Sac 3:==:@? :?4C62D6 :? ?6E 72C> :?4@>6D ?2E:@?2==J 4@>A2C65 E@ H92E E96J H6C6 E9:?<:?8 H2D 8@:?8 E@ 92AA6? D:I >@?E9D 28@]k^Am

kAm%96 492?86 :? &]$] 72C> 42D9 C646:AED 7C@> a_ab\ac 3J 4@>A@?6?E 492?86 C67=64ED 7@FC 42E68@C:6Di AC:46 492?86[ BF2?E:EJ 492?86[ @E96C 492?86D 2?5 E@E2= 492?86] x? E9:D 42D6[ E96 3:886DE C62D@? 7@C E96 Sac 3:==:@? :?4C62D6 :? ?6E 72C> :?4@>6 :D E96 BF2?E:EJ 492?86]k^Am

kAm“*:6=5D E9:D J62C 2C6 9:896C E92? H92E &$sp AC@;64E65 E96J H@F=5 36 324< :? E96 H:?E6CE:>6] %96 BF2?E:EJ 492?86 :D E96 3:8 C62D@? H9J E92E a_ac ?F>36C :D 36EE6C E92? E96J E9@F89E :E H2D 8@:?8 E@ 36[” 96 D2:5]k^Am

kAmr2D9 C646:AED 7@C E96 >2;@C &]$] 4C@AD[ 7C@> a_ab\ac[ H:E9 E96 6I46AE:@? @7 G686E23=6D[ D9@HD E92E 4@C? :D 5@H? 7C@> Sg_ 3:==:@? E@ Sec 3:==:@?j D@J362?D 2C6 5@H? 7C@> Sdh E@ Sd_ 3:==:@?j 2?5 H962E :D 5@H? 7C@> S`b 3:==:@? E@ S``]c 3:==:@?]k^Am

kAm“%92E 5C@A :? AC@;64E65 42D9 C646:AED :? 4@C? :D ;FDE 2 C62==J 3:8 ?F>36C 2?5 6IA=2:?D 2 =@E @7 H9J E96 ?6E 72C> :?4@>6 5C@A 92D 92AA6?65 @C :D 92AA6?:?8[” !2C>2? D2:5]k^Am

kAm&]$] 42D9 C646:AED 7@C 2?:>2= AC@5F4ED 2C6 2 5:776C6?E DE@CJ]k^Am

kAm“p 3:8 C62D@? 7@C E92E :D DEC@?8 56>2?5[ 3FE 2=D@ DEC@?8 AC:46D E9C@F89@FE E96 J62C[ 2?5 ;FDE 23@FE 6G6CJ@?6 925 2? @AA@CEF?:EJ E@ E2<6 25G2?E286 @7 E92E[” 96 D2:5]k^Am

kAm&$sp :D D9@H:?8 E92E 42EE=6 2?5 42=G6D C646:AED 7C@> a_ab\ac 2C6 FA Se]d 3:==:@? 5@==2CD[ 7C@> S`_` 3:==@? E@ S`_f 3:==:@?]k^Am

kAms2:CJ C646:AED 2C6 FA 7C@> Sce 3:==:@? E@ Sd_ 3:==:@?] qC@:=6CD 2C6 FA 7C@> Sca]e 3:==:@? E@ Scc]c 3:==:@?[ 2?5 9@8D 2C6 FA D=:89E=J[ 7C@> Saf]a 3:==:@? E@ Saf]h 3:==:@?]k^Am

kAmt88 C646:AED 2C6 FA 7C@> S`f]h 3:==:@? E@ Sac]g 3:==:@?]k^Am

kAmv@G6C?>6?E A2J>6?ED 2?5 E96 AC@8C2> A2J>6?E @FE=@@<D 7@C E9:D a_ac D62D@? 2C6 “?@E >F49[” 244@C5:?8 E@ !2C>2?]k^Am

People are also reading…

Kuntz family farm celebrates 100 years
Building better cows
Father-daughter duo turns milkweed into multi-faceted enterprise
Alternative crops expand options in Midwest
Feeling blessed and deeply rooted in rookie mistakes
Family-run flour mill adds value from field to table
Drones, robots, AI may hold the future to weed control strategies
National Cattlemen set to work in Colorado
Record El Niño possible in 2027
Zabel tells Ag Summit crowd the best investment is yourself
NDSU swine research facility to begin bringing in pigs
Mentorship helps farmer’s cover crop plans succeed
Young Otoe County cattleman goes from showing to selling show cattle
Storm rips through Jandal operation
Farms tell challenging immigrant history

kAm“%96C6’D ?@E >F49 :? E96 H2J @7 5:C64E 8@G6C?>6?E A2J>6?ED E@ &]$] 72C> AC@5F46CD :? a_ac[” 96 D2:5]k^Am

kAm$@>6 @7 E96 8@G6C?>6?E A2J>6?ED E92E 92G6 5:D2AA62C65 :?4=F56 |2C<6E u24:=:E2E:@? !C@8C2> !2J>6?ED[ 2?5 !!! =@2?D[ H9:=6 3@E9 &$sp 2?5 ?@?\&$sp A2?56>:4 2DD:DE2?46 A2J>6?ED 2C6 2=D@ 8@?6]k^Am

kAm“%96C6 H6C6 D@>6 724:=:E2E:@? A2J>6?ED :? a_a_[ 3FE E92E :D 8@?6[” 96 D2:5]k^Am

kAm}@?\&$sp A2?56>:4 2DD:DE2?46 2?5 &$sp A2?56>:4 2DD:DE2?46 2C6 8@?6[ 2D H6==[ 2D 2C6 E9@D6 A2J>6?ED 7C@> E96 8@G6C?>6?E :? a_a_ 2?5 a_a`]k^Am

kAm“!!! WA2J4964< AC@E64E:@? AC@8C2>X =@2?D – E92E’D @7 4@FCD6 8@?6] !2?56>:4 2DD:DE2?46 :D @3G:@FD=J 8@?6] %96J DE:== AFE :E FA E96C6 W@? E96 &$sp 492CEDX 3642FD6 :E H2D 2 3:8 A2CE @7 a_a_[” !2C>2? D2:5]k^Am

kAmr@?D6CG2E:@? A2J>6?ED “C62==J >2<6D FA E96 3F=< @7 :E” 7@C a_ab 2?5 a_ac 8@G6C?>6?E A2J>6?ED]k^Am

kAm“~E96C A2J>6?ED[ 4@?D6CG2E:@? A2J>6?ED[ 2?5 A2J>6?ED 2D 2 7F?4E:@? @7 4C@A AC:46D – ?@E >F49] %96C6 :D ?@E 8@:?8 E@ 36 >F49 :? E96 H2J @7 p#r @C !{r 4@>:?8 5@H? E96 =:?6 7@C 8@G6C?>6?E AC@8C2> A2J>6?ED E9:D J62C[” 96 D2:5]k^Am

kAmr@>>@5:EJ AC:46D 92G6 72==6? @77[ 2?5 AC@5F4E:@? 6IA6?D6D 92G6 8@?6 5@H? D@>6[ 3FE ?@E ?62C=J 6?@F89 E@ @77D6E E96 5C@A :? AC:46D D:?46 a_aa]k^Am

kAm“%96 5C@A :? AC:46D :D AC6EEJ >F49 6IA=2:?:?8 E92E 3:8 5C@A :? ?6E 72C> :?4@>6D @G6C E96 =2DE 4@FA=6 @7 J62CD H:E9 E96 42G62E E92E E96 DEC@?8 J:6=5 ?F>36CD 6IA64E65 7@C a_ac :D 8@:?8 E@ @77D6E E92E 2 3:E] }@E 6?@F89[ 3FE 2 3:E[” !2C>2? D2:5]k^Am

kAm!C@5F4E:@? 4@DED E92E 92G6 :?4C62D65 7C@> a_ab\ac :?4=F56i =23@C 4@DED[ =:G6DE@4< 2?5 A@F=ECJ AFC492D6D[ :?E6C6DE 2?5 AC@A6CEJ E2I6D^766D]k^Am

kAm“w:89 42=7 AC:46D >62?D E92E :7 J@F’C6 3FJ:?8 42=G6D @C J@F’C6 3FJ:?8 C6A=246>6?ED[ E96C6 2C6 9:896C AC:46D[” 96 D2:5]k^Am

kAm(92E AC@5F4E:@? 6IA6?D6D 2C6 4@>:?8 5@H?n u6CE:=:K6C 4@DED 2C6 5@H? D=:89E=J[ 2?5 7665 AFC492D6D 2C6 2=D@ 4@>:?8 5@H?]k^Am

kAm$665 AFC492D6D 92G6 “=:EE=6 E@ ?@ 492?86[” 2?5 A6DE:4:56D[ E96 D2>6] uF6= 2?5 @:= DE2J65 23@FE E96 D2>6[ H:E9 “>2J36 D=:89E 564=:?6]”k^Am

kAm“#6?ED 92G6 366? AC6EEJ >F49 2 4@?DE2?E 7C@> a_ab :?E@ a_ac[” !2C>2? D2:5]k^Am

kAm%9:D 4@?7:C>D H92E >2?J 28 64@?@>:DED “<?6H H2D 8@:?8 E@ 36 ECF6[” E92E 3J 2?5 =2C86[ “a_ac H2D 8@:?8 E@ 36 2 H62<6C J62C E92? a_ab]”k^Am

kAmw@H6G6C[ H9:=6 a_ac :D 6?5:?8 FA 2 H62<6C J62C[ :E :D ?@E 2D 325 2D E96J E9@F89E :E H2D 8@:?8 E@ 36 9625:?8 :?E@ A=2?E:?8 D62D@? 2?5 E92E :D 3642FD6 J:6=5D 2C6 AC@323=J 8@:?8 E@ 362E 6IA64E2E:@?D]k^Am

kAm“%92E 5@6D?’E ?646DD2C:=J 3@56 2== E92E H6== 7@C AC:46D 9625:?8 :?E@ E96 a_ad J62C] %96D6 AC@5F4E:@? 4@DED 2C6 ?@E 6IA64E65 E@ 4@>6 5@H? 2== E92E >F49 36EH66? ?@H 2?5 ?6IE A=2?E:?8 D62D@?[” 96 D2:5]k^Am

kAmu@C E9@D6 H9@ 2C6 2EE6?5:?8 E96 }s$& ~FE=@@< r@?76C6?46 7@C p8 {6?56CD[ 2?5 @E96C E2=<D E9:D 72==[ !2C>2? A=2?D E@ 5:G6 566A6C :?E@ 4@DED[ DF49 2D 6BF:A>6?E[ 76CE:=:K6C[ 7F6=D[ 2?5 =2?5 C6?ED^AC:46D]k^Am

kAm“#:89E ?@H[ E96C6 :D ;FDE ?@E 2 H9@=6 =@E @7 AC6DDFC6 E92E H6’C6 D66:?8 @FED:56 @7 FD65 6BF:A>6?E E@ AFE 5@H?H2C5 AC6DDFC6 @? E96D6 AC@5F4E:@? 4@DED 9625:?8 :?E@ ?6IE DAC:?8[” !2C>2? 4@?4=F565]k^Am