K-State economist warns Kansas crop incomes remain under pressure; committee approves draft request for hemp bill

Kansas State University agricultural economist Alan Featherstone told the Committee on Agriculture and Natural Resources on Tuesday that the state’s crop sector remains under stress after two difficult years, while land values and federal relief have cushioned some farm balance sheets.

Featherstone, head of the K-State Department of Agricultural Economics, said “the real struggle right now is on the crop side,” and presented data showing a steep fall in net farm income, higher short-term borrowing and a declining liquidity picture for many Kansas farms.

The presentation matters because crop incomes drive farm family livelihoods across rural Kansas and because state lawmakers who heard the briefing also raised questions about tax, water and labor policy that could affect producers.

Featherstone said the department’s farm-management sample shows average net farm income fell from around $300,000 (in earlier very strong years) to roughly $100,000, with a back-of-envelope estimate near $40,000 for 2024 absent later adjustments. He also reported that roughly one in four Kansas farms had negative net income in 2023, compared with one in 20 in 2021. “We…