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.
The House is moving forward with debate on the Farm Bill after a lengthy session in the House Rules Committee cleared the legislation for floor consideration.
Farm Bureau officials say the findings underscore mounting pressure on producers heading into the 2026 growing season, with input costs continuing to outpace farm income. Corey Rosenbusch with The Fertilizer Institute joined us to discuss supply chain disruptions and what farmers should watch as global tensions impact fertilizer markets.
U.S. Secretary of Agriculture Brooke Rollins announced the availability of over $275 million in grant funding in FY2026 for the specialty crop industry in the United States through three USDA programs.
Natalie Roy from AgriSafe Network talks about women’s role in agriculture and the increasing need to address their unique health and safety needs as they form a larger part of the workforce.
In honor of Oral Cancer Awareness Month, Dr. Jeffrey Gold shares how disparities in dental care impact rural Americans and why early detection is important.
Lewie Pugh, with the Owner-Operator Independent Drivers Association, discusses EPA DEF system changes and what they mean for the supply chain and fuel costs.
