Farmers might have to make significant costs to remain profitable, economists warn

The farm economy has several challenges ahead. Economists with Ag Economic Insights say tight margins are likely to continue and warn it will take some cost cutting to find profitability again.

“At this point, it’s a little unclear how much of the cost cutting is going to come out of the variable cost, the things that e get price sheets for, how much of it’s going to come out of the things that we do around the home, homesteading our family living, or machinery, or cash rents in our farmland values,” said David Widmar.

While there is likely a rocky road ahead, farmer sentiment is up. Economists with Purdue University say the Ag Economy Barometer rose 11 points last month. However, the report showed little change in how producers feel about the future prospects.

Related Stories
RealAg Radio host Sean Haney joins us for a Canadian perspective on President Trump’s controversial tariff rollout, lower court rulings, and upcoming review by the U.S. Supreme Court.
The Interior Department is proposing to repeal the Bureau of Land Management’s Public Lands Rule. This move would make huge strides to empower local decision-making and restore balance between conservation and protecting rural livelihoods tied to these public lands.
With new renewable volume obligations announced this year, the Iowa Soybean Association says they’ll be vital to a farmer’s bottom line.
The 2022 Census of Agriculture revealed a more than 30% decrease in U.S. dairy farms since 2017. The shrinking industry is now uniting to advocate for itself while also adopting technology to reduce operational strain.
The Supplemental Nutrition Assistance Program (SNAP) was once again on the national stage, front and center this week before the House Agriculture Committee.

LATEST STORIES BY THIS AUTHOR:

Mexico’s tougher, two-step treatment and added checkpoints are catching cases before they can spread—good news for producers near the border.
Despite tariffs having a less significant impact on exports, corn producers struggle with tariff-related increases on inputs, which complicates their bottom line.
Jack Daniel’s will end its Cow Feeder Program, which served around 100 livestock operations near the distillery, and redirect spent grains to its anaerobic digester.
Prepare for acute UAN risk and a brief urea shock; maintain steady ammonia and phosphate plans, and monitor potash basis on the coasts.
Software developers at John Deere Digital are addressing challenges with their new Operations Center, which helps farmers make decisions on the fly.