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.
USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
January 05, 2026 03:58 PM
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Weather, Tight Supplies, and Planning Shape Farm Decisions
January 05, 2026 03:23 PM
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Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
January 05, 2026 03:08 PM
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Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
January 05, 2026 03:00 PM
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Read the full press release published by the U.S. Department of Agriculture.
January 05, 2026 02:36 PM
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A look at the legislative year ahead as lawmakers return to Washington with a slate of trade concerns to tackle in 2026—from new Chinese tariffs on beef imports to the USMCA review this summer.
January 05, 2026 12:20 PM
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