Sluggish crop prices are primary factor in downturn.

The U.S. Department of Agriculture’s (USDA) latest farm income forecast for 2024 offers a complicated picture of the ag economy. While net farm income is projected to decline, the sector’s overall financial health remains surprisingly solid, with farm equity demonstrating notable growth.

Net farm income, a key indicator of profitability, is expected to reach $140.7 billion in 2024, marking a decrease of a little more than 4% from 2023.

This downturn is attributed mainly to a significant drop in crop receipts, particularly for corn and soybeans, which are projected to decline by $25 billion, or a little more than 9%. Weaker global demand, falling prices and heightened...