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
U.S.-Mexico agricultural trade faces uncertainty in 2026 as tariffs and cartel violence threaten farmers and ranchers. Congressman Henry Cuellar and Texas leaders weigh in on impacts and risks.
Through “One Farmer, One File,” USDA’s mission is to create a single, streamlined record that follows the farmer — no matter where they go in the USDA system.
USDA headquarters downsizing reflects cost pressures and may reshape agency operations.
At Commodity Classic in San Antonio, growers explore new herbicide options, John Deere’s latest 8 Series tractors, and cutting-edge ag technology shaping the 2026 planting season. Here are some of RFD NEWS’ highlights from the event so far.
Farm Bureau economist Danny Munch explains the importance of timely enrollment, and how the program helps dairy producers safeguard their operations against volatile milk markets.
The Ranger Road Fire is fully contained after burning nearly 300,000 acres. Ranchers face significant cattle and fence losses, with recovery efforts underway.

LATEST STORIES BY THIS AUTHOR:

Brent Graves of StockShowAuctions.com takes us to Grayson County to see the damage from a historic winter ice storm and what it will take to rebuild.
UT Extension also offers tips to help consumers stretch their grocery budgets, including meal planning, sticking to a shopping list, and choosing store or generic brands.
Sen. Amy Klobuchar has four years remaining in her Senate term and could decide to continue serving in that role while campaigning for Governor of Minnesota.
STRAUSS CEO Henning Strauss joined us with a preview of “Meet Strauss: The Tool You Wear,” premiering live tonight at 7:30 ET — only on RFD Network and RFD+
FarmHER Chris Nellis and her daughters navigate loss while carrying on a 300-year farm legacy, milking cows in upstate New York.