Ag at a ‘Breaking Point': Farm Survey Signals Growing Stress Across U.S. Agriculture

Margin pressure and competitiveness concerns are shaping cautious outlooks.

Cotton Plant. Cotton picker working in a large cotton field_Photo by MagioreStockStudio via Adobe Stock.jpg

Photo by MagioreStockStudio via Adobe Stock

LUBBOCK, TEXAS (RFD NEWS) — U.S. farmers are increasingly concerned about long-term profitability and global competitiveness, as rising input costs and weaker margins continue to pressure operations across the country.

A new survey from the Southern Cotton Ginners Association, conducted at the Mid-South Farm & Gin Show, found more than 52 percent of respondents expect to be worse off within two years, while only 9 percent anticipate improvement. Over 75 percent believe U.S. agriculture has lost competitiveness in the past five years, with many pointing to Brazil’s lower costs, fewer regulations, and larger production scale as key advantages.

The cost-price squeeze remains a central concern. More than 80 percent of respondents identified commodity prices as a major issue, while 60 percent cited input costs as a primary pressure on margins. That combination is raising concerns about financial viability, with some producers indicating difficulty securing operating loans for the coming season.

Beyond farm-level economics, structural concerns are also emerging. Respondents highlighted consolidation among input suppliers and broader rural economic decline, including land leaving production and a decline in local operators.

Discussions at the event focused on potential solutions, including policy changes and incentives to support domestic production, but uncertainty remains elevated across the sector.

Farm-Level Takeaway: Margin pressure and competitiveness concerns are shaping cautious outlooks.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
EPA Administrator Lee Zeldin, in consultation with the U.S. Department of Energy and under the Clean Air Act, approved the temporary measure to help stabilize fuel supplies and reduce costs for consumers.
As farmers and ranchers navigate rising input costs, lawmakers are considering a roughly $15 billion aid package to help, which would be tied to the spending bill for the war with Iran.
After devastating wildfires swept through Nebraska, Sen. Deb Fischer is championing a bill to expedite the relief process for farmers and ranchers. She joins us with updates on recovery efforts, conditions on the ground, and how the ag community has stepped up to help.
Lower costs improve competitiveness, but demand remains uncertain.
Policy clarity will determine the trajectory of soybean crush demand, but producers in Kansas have shown that expanding local crush capacity strengthens basis and marketing options.
Corn and soybean shipments continue to move at a steady pace as spring trade flows develop.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Herd contraction remains gradual across North America.
Strong land values continue masking tighter farm finances.
Tight supplies continue supporting strong cull values.
China’s stricter inspection rules prompt Cargill to pause soybean exports from Brazil, briefly lifting U.S. soybean prices as traders anticipate potential shifts in global trade, as export demand remains supportive across all major U.S. commodities.
Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.