WASHINGTON, D.C. (RFD NEWS) — U.S. farm price relationships weakened further at the end of 2025 as prices received by producers declined while costs continued to climb, tightening margins across much of agriculture. USDA’s December Agricultural Prices report (PDF Version) shows broad pressure on livestock values alongside modest relief in select crop markets.
The December Prices Received Index fell 3.1 percent from November and 4.6 percent from a year earlier. Crop prices were mixed, with the Crop Production Index down 2.4 percent month to month but still 3.4 percent above December 2024. Livestock prices drove most of the decline, with the Livestock Production Index dropping 5.7 percent from November and 13 percent from a year ago. Lower prices for cattle, milk, eggs, and lettuce outweighed gains in broilers, corn, grapes, and calves.
At the same time, input costs continued to rise. The Prices Paid Index increased 0.3 percent from November and stood 8.5 percent higher than a year earlier. Higher costs for feeder cattle, feeder pigs, nitrogen, and concentrates offset lower fuel, feed, and forage prices.
The ratio of prices received to prices paid slipped to 79, underscoring ongoing margin stress.
Farm-Level Takeaway: Falling livestock prices combined with higher input costs continue to squeeze farm profitability heading into 2026.
Tony St. James, RFD NEWS Markets Specialist
Imported lean beef continues to play a critical role in U.S. hamburger and ground-beef production, with any added volume from Argentina serving as a supplement — not a market overhaul.
October 27, 2025 11:51 AM
·
Margin Protection and the new MCO add county-level margin tools — with earlier price discovery, input cost triggers, and high subsidy rates — to complement on-farm risk plans for 2026.
October 24, 2025 01:44 PM
·
For aging operators and their rural neighbors, staying socially engaged is a practical strategy to preserve decision-making capacity and farm vitality.
October 24, 2025 01:37 PM
·
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.
October 24, 2025 11:05 AM
·
Rising demand for Comfort Colors t-shirts reinforces the pull for U.S.-grown cotton, linking rural fiber production to a fast-growing mainstream apparel brand.
October 23, 2025 03:06 PM
·
American Farm Bureau Federation (AFBF) economist Bernt Nelson provides an updated outlook on the current U.S. cattle market.
October 23, 2025 02:20 PM
·
Farm CPA Paul Neiffer discusses the status of USDA disaster aid, including delays to Stage 2 of the SDRP program, and what farmers should watch for as lawmakers negotiate an end to the government shutdown.
October 23, 2025 01:03 PM
·
Australia’s expanding harvest and global oversupply are keeping wheat and barley prices capped, though canola markets may hold firmer on shifting oilseed demand.
October 23, 2025 10:17 AM
·
Expanding bioethanol use strengthens rural economies, supports farm markets, and positions U.S. agriculture at the center of global low-carbon trade.
October 23, 2025 10:10 AM
·
