The April Ag Economists Monthly Monitor is a joint survey of 70 ag economists that is conducted by the University of Missouri and Farm Journal. Results indicate that net farm income is expected to drop 25% this year to $117.82 billion. This compares to $155 billion of net farm income generated in 2023.

The largest and second-largest drops in farm income have occurred over the past two years. Farmers are facing a margin squeeze with higher input costs, lower commodity prices, and higher interest rates.

Nearly 80% of the economists participating in the survey anticipate this will accelerate consolidation in row-crop operations and allied industries. The economists predict farm geographies at greatest risk for consolidation include wheat and cotton production where drought persists. Corn belt regions with marginal soil and production could also be at risk.

Read more about ag economist’s consolidation concerns here.