Growing Trouble: Farm income drops as debt and machinery prices escalate

Farmers are struggling with low commodity prices and skyrocketing input costs, resulting in debt that is outpacing income across the sector, according to the USDA’s new farm income forecast.

A new farm income forecast from the Economic Research Service (ERS) is out this week, showing a several billion dollar decline from estimates earlier this year. But in a call with farm reporters, U.S. Senator Chuck Grassley (R-IA) said it’s still too early to tell if farmers will need a bailout.

Farm-Income-Forecast-Sept-2025.png

Farm sector profits forecast to grow in 2025

USDA, Economic Research Service, Farm Income and Wealth Statistics, Data as of Sept. 3, 2025

The income forecast indicates the amount of cash farmers and ranchers have available this year, which is less than the U.S. Department of Agriculture (USDA) estimated in February.

Also, a large number of borrowers are reporting trouble at the farm. New federal numbers show more banks are realizing some loans likely won’t be paid back.

Machinery Costs Break the Bank

Machinery costs are just one input cost that has increased over the last couple of years. Several universities have researchers looking into it, and they’ve found a 10% jump for some models.

Related Stories
Shaun Haney with Real Ag Radio joined us to break down the USMCA review and what Canadian producers and exporters should be watching in the months ahead.
USDA Undersecretary Dr. Mindy Brashears provides more insight on the updated “Product of USA” label campaign and the USDA’s goals for both consumers and producers.
Fertilizer relief may be limited despite the reopening of the Strait of Hormuz this week. AgriSompo’s Brooks York discusses marketing strategies, crop insurance considerations, and other tips for producers navigating volatility this planting season.
Reduced driver supply may increase freight costs this season.

LATEST STORIES BY THIS AUTHOR:

One Iowa man’s story is a powerful reminder of service, sacrifice, and home.
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
Kate Walker has the story, highlighting how students are learning to protect and preserve natural resources while gaining valuable technical and teamwork skills.
The Summit Cup is the fourth and final event in the Major League Fishing Team Series. Catch the action live on RFD-TV, starting on Sunday, November 16.
Experts highlight the importance of monitoring insecticide resistance in crops and improving disease traceability at livestock shows through RFID technology.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, joined us on Monday’s Market Day Report to share his perspective on what the bill could mean for truckers.