The impact is stark, with the U.S. Department of Agriculture (USDA) forecasting a dramatic $55.61 billion drop in inflation-adjusted net farm income for 2024—over a 27% decrease from 2022 levels.
Additionally, the prices for major crops have fallen by an average of 21% since the start of the year, while production costs remain high.
Since the 2018 farm bill, farmers have faced numerous hardships, including a pandemic, global unrest, a trade war with China, and ongoing supply chain disruptions.
USDA projects that farm sector debt will reach nearly $541 billion in 2024, marking the highest inflation-adjusted level in over 50 years.
The letter from the agricultural organizations acknowledges the efforts of committee leaders in drafting a new farm bill and recognizing the vital role farmers play in providing food, feed, fuel, and fiber. It urges Congress to act before the year ends to bolster farm policy.
The letter warns that failing to pass a new bill with significant investments in commodity programs and crop insurance or opting for a mere extension of the current law—could leave many family farms without the means to continue operations in 2025 and beyond.