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
The sugar policy debate affects prices, trade, and farm stability.
Farmer Jeffry Mitchell with the Mississippi Farm Bureau joins us for a spring planting update from the southeast region as drought, input costs, and fertilizer access complicate crop progress.
Cattle producers face mounting pressure as U.S.-Mexico trade talks resume, but expanding drought, rising input costs, and policy work to improve the long-term industry outlook.
Lower U.S. ethanol production and stocks may support ethanol prices while strong export demand continues to support ethanol and corn markets.

LATEST STORIES BY THIS AUTHOR:

RFD-TV tax expert Roger McEowen discusses the renewed tax provision and how cattle producers can take advantage of it to recover investments in heifer retention and herd expansion more quickly.
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
Rich Nelson, a commodity broker for Allendale Inc., joins us to break down what the U.S.-China trade agreement means for the ag economy.
Rollins will also tour a small soybean operation in Iowa before her appearance at Lucas Oil Stadium.
Tara Vander Dussen, fifth-generation dairy farmer, environmental scientist, and co-host of Discover Ag, joined RFD-TV to talk about her work in agriculture and her passion for sharing the story of dairy.
Dr. Jeffrey Gold, President of the University of Nebraska, joined RFD-TV to discuss how seasonal stress and mental health concerns can make it more challenging to get a restful night’s sleep