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
The proposal would require farmers’ consent before companies can sell agricultural data
Alan Bjerga with the National Milk Producers Federation discusses how stewardship is driving efficiency, profitability, and competitiveness in the dairy industry.
Texas continues to play a critical role in the U.S. beef supply chain, with both cow-calf operations and feedlots contributing significantly to national production.
Labor supply may shift, but uncertainty remains for producers.
Spring Fieldwork Expands While Weather Challenges Persist Nationwide
U.S. Secretary of Agriculture Brooke Rollins announced the availability of over $275 million in grant funding in FY2026 for the specialty crop industry in the United States through three USDA programs.

LATEST STORIES BY THIS AUTHOR:

Michael Cliver discusses his recent visit to the White House with the National Cattlemen’s Beef Association, and the Trump Administration’s “Working Families Tax Cuts” impact on ranching families.
PLC and NCBA Chief Counsel Kaitlynn Glover reacts to the USDA’s new Grazing Action Plan, regulatory relief for ranchers, and the industry’s efforts to improve access to public lands.
Secretary Rollins is signaling a possible reopening of the southern border to Mexican feeder cattle as officials work to manage the threat of the New World Screwworm.
On this week’s Rural Health Matters, Dr. Jeffrey Gold raises awareness about Parkinson’s disease, shares insights on early detection, and offers guidance for patients and families in rural communities.
Nebraska Farm Bureau President Mark McHargue joined us to discuss wildfire recovery efforts in the state, impacts to agriculture, and conditions heading into the spring planting season.
USDA’s Quarterly Grain Stocks report shows increased supplies across all major commodities, with corn, soybeans, and wheat stocks all rising compared to a year ago. Lewis Williamson with HTS Commodities discusses producer and market sentiment ahead of the key report.