2024 Farm Business Analysis Report
DOWNLOADAugust 13, 2025
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This report is based on FINPACK FinAn business analyses through MSU Extension participating farms. It is a gauge of the financial performance of Michigan farms completing the analysis. The Farm Business Summaries are divided into three Whole Farm Analyses subsets:
- All Participating Farms - Whole Farm Report
- Crop Farms Only – Whole Farm Report
- Dairy Farms Only – Whole Farm Report
There are also “cost of production” enterprise reports for corn, soybeans and winter wheat.
Farms are included as “crop” or “dairy” if over 70% of their gross farm income comes from their crop sales or milk sales/dairy cattle sales, respectively.
Highlights
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|
2020 |
2021 |
2022 |
2023 |
2024 |
|
All Farms |
|||||
|
Net Farm Income |
$192,016 |
$268,246 |
$439,960 |
$42,761 |
$230,488 |
|
% Return on Farm Assets (FMV) |
4.3 |
6.6 |
8.9 |
1.2 |
4.2 |
|
Net Worth Change (FMV) |
$195,109 |
$392,701 |
$434,754 |
$75,244 |
$335,377 |
|
Debt Replacement Margin |
$92,522 |
$183,655 |
$292,407 |
($77,503) |
$108,619 |
|
Crop Farms |
|||||
|
Net Farm Income |
$180,455 |
$308,225 |
$287,762 |
($18,944) |
($39,286) |
|
% Return on Farm Assets (FMV) |
4.4 |
8.7 |
6.8 |
0.6 |
(0.3) |
|
Net Worth Change (FMV) |
$192,335 |
$514,525 |
$312,475 |
$64,915 |
$51,422 |
|
Debt Replacement Margin |
$90,370 |
$239,350 |
$159,064 |
($113,894) |
($113,434) |
|
Dairy Farms |
|||||
|
Net Farm Income |
$315,943 |
$271,739 |
$1,158,690 |
$253,018 |
$1,013,939 |
|
% Return on Farm Assets (FMV) |
4.8 |
4.7 |
14.7 |
2.6 |
8.5 |
|
Net Worth Change (FMV) |
$290,274 |
$278,801 |
$1,069,124 |
$300,530 |
$1,203,490 |
|
Debt Replacement Margin |
$189,010 |
$142,821 |
$993,504 |
$80,844 |
$752,234 |
Interpretations
Incomes rose significantly from $42,761 in 2023 to $230,488 in 2024 for the average of all TelFarm participating farms. The average net farm income was buoyed by higher dairy farm incomes, meanwhile the crop farms are dealing with lower profits due to stubbornly low-price levels on cash grain crops.
Crop Farms
The average crop farm had a negative 2024 net farm income of ($39,286). This is after adjusting for the drop in crop inventory value of ($29,488), when comparing the ending balance sheet value to the beginning balance sheet value. Crop input costs have also increased over the previous years. The average corn sale price for all farms was a low $4.15 per bushel, $4.19 for crop only farms.
The bright spot in 2024 was a very high average corn yield of 197 bushels per acre for all farms; and only the crop farms at 202 bushels per acre. Soybeans and wheat showed good yields also.
The net farm income was relatively close to the same as in 2023, but net cash incomes were lower in 2024. The probable changes include reducing capital purchases and possibly increasing debt to deal with the low incomes.
|
Reported Average Corn Yields and Sale Prices (All Farms) |
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|
|
2020 |
2021 |
2022 |
2023 |
2024 |
|
Avg. Corn Yield bu/ac |
165 |
185 |
176 |
180 |
197 |
|
Avg. Corn Sale $/bu |
$3.81 |
$4.27 |
$6.22 |
$5.98 |
$4.15 |
Dairy Farms
The average dairy farm had a 2024 net farm income of $1,013,939. This is higher than all previous years, except 2022. The 2024 average milk sale price was $23.24 per cwt for our reporting dairy farms. This price increased from $20.21 in 2023. There was also strong beef feeder demand and cull cow prices that helped profits. The recent years have been very good for the health of Michigan dairy farms, so it is assumed to have cured many previous wounds from the 2010-2018 years.
|
Reported Average Milk Sale $ per Cwt |
||||
|
2020 |
2021 |
2022 |
2023 |
2024 |
|
$16.62 |
$17.85 |
$25.06 |
$20.21 |
$23.24 |
Enterprise Analysis
Enterprise Analysis calculates the cost of production and then is adjusted by
government payments received and unpaid operator labor. Crop enterprises include
corn, soybeans, and winter wheat. Crop enterprise reports are sorted by owned and
cash rent.
Compiled by: John Jones, TelFarm Program Coordinator and Stephanie Lelo, TelFarm Center Support Specialist, AFRE Dept, MSU. MSU-Extension Farm Management Educators Roger Betz, Corey Clark, Florencia Colella, Jon LaPorte, Chris Bardenhagen, Cheri Burk, and Frank Wardynski contributed FINPACK Farm Business Analyses for this report.
