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Aid payments help, but 2024 farm incomes likely still negative

A farm management specialist at the University of Illinois says the average farmer will likely see negative 2024 returns even with the economic assistance payments that were included in the American Relief Act of 2025.

Gary Schnitkey says the $10 billion in aid is spread over nine crops.

“It’s gonna be roughly $42 per acre for corn, $29 to $30 for soybeans, and $30 for wheat,” he says.

He tells Brownfield the assistance significantly reduces losses for 2024, but returns for an average cash rent farm are still below break evens.

“From negative $118 per acre to $71.  That’s negative $71, which is very low.”  He says, “So that’s a substantial decline, but we’re still going to be looking at very low incomes for 2024.”

Schnitkey says the payments will make financial planning and loan renewal easier for the 2025 production year, but they’ll also likely have long term impacts on costs like cash rents.

“For example, landowners are likely to see these aid payments and are less likely to adjust cash rents down.”  He says, “We’re gonna have to see lower costs given the commodity price levels that we’re at and this will slow that down.”

He says the payments, being handled by the Farm Service Agency, are expected to reach farmers in the first part of 2025.

AUDIO: Gary Schnitkey – University of Illinois