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
Ben Kurtzman with American Farmland Trust discusses the growing pressure on farmland and ranchland and the steps being taken to help conserve farms and ranches across the country ,as unrest in the Middle East adds more obstacles for producers.
Former U.S. Secretary of Agriculture and Kansas congressman Dan Glickman joined RFD News to share his outlook on agricultural policy, bipartisan cooperation, and the challenges facing farmers today.
The bill has already cleared the House Agriculture Committee and is headed toward a full House vote, but the timeline for final passage remains unclear. But the question is, when exactly? Could it possibly be a nice little gift for Easter?
Tidal Grow’s AlignN delivers encapsulated nitrogen to leaves, boosting in-season response, yield gains, and farm profits.
Jake Charleston of Specialty Risk Insurance offers his perspective on current cattle market conditions and shares advice for producers seeking to stay protected in an uncertain market.
Leadership continuity signals a steady focus on family farm advocacy.

LATEST STORIES BY THIS AUTHOR:

NRECA CEO Jim Matheson warns that rising electricity demand from AI and data centers could strain the grid and affect rural electric cooperatives if U.S. power infrastructure cannot keep up.
Katie Keener with the National Women in Agriculture Association joins us to celebrate women in agriculture and spotlight programs and initiatives aimed at empowering female producers across the country.
Nationwide’s Elizabeth Duncan and Traci Via with Agriculture Future of America highlight the impact of women in agriculture and how mentorship and partnerships empower future farmers and ranchers.
National Pork Producers Council incoming president Rob Brenneman shares insights from the National Pork Industry Forum in Kansas City, where producers gathered to discuss Farm Bill policy, sustainability, and other priorities for the year ahead.
Co-founders Jeremy and Heather Clark share how Vets to Cowboys helps U.S. veterans build new skills, find community in cattle ranching, and discover new opportunities in agriculture.
The American Coalition for Ethanol reacts as the Farm Bill heads to a full House vote — while ethanol expansion, including year-round E15, is left out — as well as the USDA’s pursuit of global markets for ethanol.