Arkansas farmers are projected to see a decline in income for the second consecutive year in 2024, according to a report from the Rural and Farm Finance Policy Analysis Center. The state’s net farm income is expected to drop by 10% from 2023 levels, reaching $2.96 billion. Input costs are also expected to decline slightly, with fertilizer and pesticides, fuel oils, and production expenses all forecasted to decrease.
Despite the income decline, there are some positive trends in the agricultural sector. Livestock receipts are expected to increase by 5%, while crop receipts are projected to drop by 10%. Higher egg, broiler, and cattle prices are supporting the livestock industry, with poultry receipts expected to increase by $287 million. Cattle and hog receipts are also projected to be higher by $97 million.
Commodity prices for key crops like rice, corn, cotton, and soybeans are facing challenges, with prices at their lowest levels in recent years. However, record yields for crops like rice and soybeans are expected, which could help offset the impact of lower prices.
Despite the challenges facing Arkansas farmers, there are some positive signs in the agricultural sector. The report highlights the resilience of the livestock industry and the potential for record yields in certain crops. However, the overall income decline is a concern, and farmers will need to carefully manage their expenses in the coming year.
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