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 National Farm Machinery Show is underway in Louisville, Kentucky, bringing together the latest in agricultural equipment, technology, and innovation. Here are some highlights from the trade show floor so far!
Specialty Crops Acreage Reporting Deadline for 2025 is March 13
Livestock Conservancy Senior Program Manager Jeannette Beranger explains the upcoming poultry census and ongoing efforts to preserve rare and heritage poultry breeds raised across the U.S.
Ag Committee Chairman Rep. Glenn “GT” Thompson has referred to the proposal as “Farm Bill 2.0.”
In the U.S. and Canada, reduced planted acres—not yield losses—led to a decline in potato production, while Mexico saw modest gains due to increased yields and harvested areas.

LATEST STORIES BY THIS AUTHOR:

The application deadline is March 8, 2026. The 1890 National Scholars Program aims to encourage students at 1890 land-grant universities to pursue careers in food, agriculture, and natural resource sciences.
Midland County Junior Livestock Show in West Texas features swine competition with top exhibitors, including Grand Champion Brinley Wilson, ahead of Saturday’s premium sale.
Rep. Erin Houchin of Indiana discusses how the Affordable Homes Act will benefit rural communities, and her broader efforts to improve access to affordable housing.
Iowa Secretary of Agriculture Mike Naig discusses market conditions, policy priorities, and his outlook for agriculture moving forward.
NEFB President Mark McHargue recaps the Farm Bureau’s Annual Convention, producer sentiment in Nebraska, and discusses key issues facing agriculture.