The ProPartners Perspective: Growers facing continued headwinds
Accessible input financing essential as net farm income declines for the third consecutive year.
Growers and their input providers are experiencing another challenging year, according to multiple agriculture outlets. Even though the USDA is projecting record-high corn and soybean yields for 2024, these strong yields, substantial carryover inventories, and low demand for U.S. soybeans by China are putting continued downward pressure on crop prices as harvest continues.
In addition to lower commodity prices, production and labor costs remain elevated amid high interest rates and rising grower debt levels. Even though total farm production expenses are projected to decrease by $4.4B instead of initial reports of an increase of $16.7B, that improvement is overshadowed by the current USDA projection for net farm income to decline nearly 25% in two years. It’s an uncertain situation and crop input providers are advised to be proactive during these volatile markets.
With the 2025 crop year now underway, retailers and input manufacturers can help offset lower farm income by ensuring their growers have access to a reliable source of financing as they navigate 2025-26 conditions. With ProPartners Financial, it includes the reassurance of immediate loan approvals and actual next-day funding.
“The recent Longshoreman strike and catastrophic weather events like Helene and Milton are just a few external examples of what’s causing another tough year for agriculture, on top of the bleak USDA predictions we’re hearing,” says Matt Koonce, Senior Relationship Manager
For more information or to begin your credit program, please contact info@ppfcredit.com.
Sources
USDA forecasts US corn production down and soybean production up from 2023
Agriculture in the Red: Net Farm Income Drops Again in 2024 Forecast | Market Intel | American Farm Bureau Federation (fb.org)
Third year of farm income decline is on the horizon (agriculture.com)
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