The latest Ag Economists’ Monthly Monitor revealed expectations of a major drop in net farm income this year. Interest rates are expected to not improve much, if any, this year, as well. The survey of 70 economists shows pessimism is growing regarding the overall farm economy. Respondents shared projections of net farm income to shrink $117 billion this year, much lower than what USDA anticipates ($121.7 billion).

Inflation and overall spiked input costs are expected to remain elevated due to the high interest rates. Of the 70 economists, 44% say they are more pessimistic about any interest rate cuts in 2024.

Read more from the February Ag Economists’ Monthly Monitor here.