Pressure on Farmers only increasing, as farm incomes will drop again in 2024. Increasingly unpredictable and severe weather, coupled with unstable international markets, makes stready income from clean energy even more important.
·After decreasing by $29.7 billion (16%) from 2022 to a forecast $155.9 billion in 2023, net farm income in 2024 is forecast to decrease further from the 2023 level by $39.8 billion (25.5%) to $116.1 billion.
· Net cash farm income reached $202.3 billion in 2022. After decreasing by $41.8 billion (20.7%) from 2022 to a forecast $160.4 billion in 2023, net cash farm income is forecast to decrease by $38.7 billion (24.1%) to $121.7 billion in 2024.
Hemmes: Well, here’s something that happened. Just last week, they were at the China international Expo, which is a half a million people, all the people China trades with, and they have a big expo. And the soybean people last year went met with all the Chinese government officials. This year, USDA wanted to set up the meetings, and the Chinese wouldn’t accept meetings with them. So that tells you. And then, I got a text from the United Soybean Board Chairman who was there, and they just announced, buckle up. It’s gonna be a fun ride. So there you have it.
Ryssdal: Have you harvested yet? It’s November, so you’ve already had your harvest, right?
Hemmes: Yep, I’m done. And last year, if you remember, I had, like, one of the best harvests I’ve ever had. This year was the worst harvest I’ve ever had. My husband goes, it’s not the worst. And I go, maybe not, but it’s the worst since I’ve been able to, you know, glean all the information off of every acre, you know, have the technology to do that. So, that’s why we have crop insurance.
Ryssdal: What happened? Was it too dry or what?
Hemmes: It was too dry. It was too wet early, so some spots drowned it out, but not much. And then it just shut off. You know, there was just no rain. And I’d been in a drought for four years. So I said, this is gonna catch up to me someday, and we’re all hurting in my little part of the world here.
Ryssdal: We’ve been talking, I don’t know, five, six years, whatever. And we’ve talked a couple of times about how how tough agriculture is. Yow you guys are at the mercy of the weather. And you’re price takers, not price makers, are at the mercy of the market. And you always are resilient as all get out. And are you still feeling that?
Hemmes: Yeah, I am. Well, you almost have to be, because, like I said, I’ve been doing this 39 years. It’ll come back and you take your profits while you can. And fortunately, I’m older, and I’m a more experienced farmer, and I have got a lot of things paid off. So I’m lucky that way. You know, we’ve been farming this ground for over 125 years, and we’ve made it this far. So it’s just like any business, you know, you watch your expenses. So yes, Kai. I’m still optimistic.