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
With feed supplies running tight, producers can tap into some creative options, according to University of Pennsylvania Veterinarian and Professor Dr. Joe Bender.
Shawn Haney, Host of RealAg Radio on Rural Radio SiriusXM Channel 147, joined us on Tuesday’s Market Day Report with the latest news from Canada impacting the ag sector.
Dr. Deb Vnoverbeke, UNL’s Head of Animal Science, joins us with more about the university’s experiential learning programs designed to prepare veterinary students for the future of agriculture.
New SDRP funding and expanded loss programs give producers additional tools to rebuild cash flow and stabilize operations after two years of severe weather losses.
The new WOTUS proposal narrows federal jurisdiction, restores key agricultural exclusions, and gives farmers clearer permitting rules after years of regulatory uncertainty.
Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Monday, November 17, 2025.

LATEST STORIES BY THIS AUTHOR:

Olivia Bury, AgriSafe Network Behavioral Health Coordinator, shares about AgriSafe Network’s resources created to support farmers and rural Americans.
Jael Cruikshank, the newly elected Western Region Vice President, shares her story on this week’s FFA Today.
Farm legal expert Roger McEowen reviews the history of the Waters of the United States (WOTUS) rule and outlines how shifting definitions across multiple administrations have created regulatory confusion for landowners.
Leslee Oden, president of the National Turkey Federation, and Jay Jandrain, CEO of Butterball, joined us in the studio on Monday to discuss the history, significance, and expectations surrounding this year’s presidential turkey pardon.
The U.S. Department of Labor (DOL) estimates that the move will save farmers and ranchers $2.5 billion each year. The group warns that new methods for calculating the adverse-effect wage rate would result in lower pay for foreign workers.
Higher rail tariffs and tighter Canadian supplies will keep oat transportation costs firm into 2026.