Total Idaho net farm income down substantially in 2024

By Sean Ellis

Idaho Farm Bureau Federation

POCATELLO - The total value of agricultural production in Idaho rose 3 percent last year and hit a record level. However, expenses rose at a higher rate and as a result, total net farm income in Idaho is down substantially.

According to USDA data released Sept. 3, the total value of agricultural production in Idaho in 2024 was $12.6 billion, up 3 percent from 2023.

That's a record, but total farm and ranch production expenses also hit a record and rose twice as fast as total ag value in the state.

The USDA data shows intermediate farm production expenses in Idaho totaled $7.2 billion in 2024, up 6 percent from 2023. Intermediate farm expenses include things like feed and seed purchases, fertilizers, pesticides, fuel, electricity, marketing, storage and transportation.

When total farm production expenses are added up, total net farm income in Idaho in 2024 came in at $2.6 billion, down 13 percent from 2023 and down 30 percent compared with 2022.

Net farm income is what's left over after total expenses are deducted from total income. Think of it as the farmer's paycheck and it's down 30 percent over the past two years.

The Sept. 3 USDA data includes the first state-level estimates of farm income for 2024 and it shows Idaho's livestock sector is faring quite a bit better than the state's crop sector. The data show the total value of animal and animal product production in Idaho in 2024 was $7.5 billion, an increase of 17 percent compared with 2023.

On the other hand, the total value of crop production in Idaho was $4.8 billion in 2024, down 12 percent from 2023.

It's the same story this year, said Teton farmer Dwight Little.

"On the crop side, it's pretty tough right now," he said. "Everything is in the tank right now, except cattle and calves. Thank goodness we have some cows. They really help."

Little said sometimes the crop side of his farm subsidizes the cows, "but this year the cows are going to subsidize the farm."

The U.S. Department of Agriculture data on value of production differs somewhat from USDA estimates for farm cash receipts, which is what the farmer or rancher gets directly for their commodity. Total value of production includes other farm income such as machine and custom work, federal commodity insurance indemnities, and cash rent received by operator landlords.

The data show that total farm and ranch production expenses in Idaho continue to rise in most categories. For example, total expenses for livestock and poultry purchases hit $1 billion in 2024, up from $808 million in 2023. Seed purchases totaled $420 million, up from $361 million.

Total statewide expenses for pesticide purchases hit $379 million in 2024, up from $332 million in 2023, total fertilizer costs hit $750 million, up from $609 million, and expenses for machine hire and custom work totaled $167 million, up from $112 million.

Total irrigation expenses in 2024 hit $106 million, up from $84 million in 2023.

The data does show that some expenses decreased.

For example, total feed purchases in Idaho dropped from $2.4 billion in 2023 to $2.2 billion in 2024, total fuel and oil costs decreased from $378 million to $365 million, and marketing, storage and transportation costs dropped from $220 million to $208 million.

The assistance that Idaho farmers and ranchers receive from the federal government is already rather low, especially when compared with other states. It fell even more in 2024.

According to USDA, direct government payments to Idaho ranchers and farmers totaled $96 million in 2024, down from $129 million in 2023. That $96 million total amounts to 0.8 percent of the total value of agricultural production in Idaho in 2024.

When everything is tallied up - total ag production income minus expenses - the data show that the average paycheck for Idaho's 22,000-plus farms and ranches decreased substantially in 2024 compared with 2023 and was down by almost a third from 2022.

Rupert farmer Mike Wilkins said 2025 is no better on the crop side.

"The input prices this year are atrocious," he said. "It's going to be a tough year. We'll hold it together, but it's a tough son of a gun out there."