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 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.
New farm payment rules allow LLC members to have separate limits, but some local FSA offices are still applying outdated policies, creating confusion for producers.
Utah Senator John Curtis joins us for “Champions of Rural America” to discuss new legislation to improve forest management and wildfire prevention and its broader implications for rural communities and infrastructure.
NRECA CEO Jim Matheson joins us to discuss rural electric co-ops’ push for expanded USDA loan programs, rising energy demand from data center expansion, wildfire mitigation and other policy priorities impacting rural power infrastructure.
Dr. Jeffrey Gold explains how springtime brings seasonal changes to agricultural operations and, with them, renewed concerns about safety, allergies, and mental health this week on Rural Health Matters.
