Mike Pearson takes a look at the September farm net income forecast.

It is estimated to be around $140 billion-- down $6.5 billion from 2023. This is a much less dramatic drop than originally thought.

The income margin is smaller than originally thought because farmers are seeing more income from the livestock sector including broilers, milk and cattle. The industry has actually seen a 7.1 percent income in receipts from the livestock sector.

However, soybeans, corn and wheat producers have seen a drop in prices which has led to a $27.5 billion drop in income.

One bright spot has been production costs which are the lowest since 2018 and may fall further. The costs are expected to fall $1.4 billion in 2024. This has meant cost dropping in fuel, fertilizer, feed costs and pesticides.

U.S. Ag Secretary Tom Vilsack says the farm income remains well above the 20 year average.

Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Mike Pearson, farm broadcaster and host of This Week in Agribusiness.