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.
Golden Harvest’s Corn Technical Product Lead, Todd McRoberts, unveils their line of Northern corn hybrids built for resilience and performance in colder climates.
Mexico plans to release 202,000 acre-feet of water into the Rio Grande, offering temporary relief to South Texas farmers as Congress advances the PERMIT Act.
Despite China’s sharp drop in grain purchases this year, new USDA export data this week shows that even some buying activity from the trade giant still moves the markets.
Tim and Sharyn Abbott of the Music City Celebration Sale recap the weekend’s premier auction, which drew top dairy breeders and buyers to Nashville again this year from across North America.
Strong crush demand and rising ethanol production are pressuring feedstocks, as traders monitor storage risks and supply chain uncertainty and await the upcoming January WASDE report.
The U.S. Meat Export Federation plans to expand its global market presence in the New Year and says it is focusing its appeal on the growing middle class worldwide.
USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
