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.
Corn and wheat inspections outpaced last year, but soybean movement remains seasonally active yet behind, keeping basis and freight dynamics in focus by corridor.
University of Nebraska–Lincoln (UNL) representative Dr. Dirac Twidwell joins us with the latest on woody encroachment conservation efforts in the Great Plains.
API said it stands ready to work with Congress to develop a balanced approach to E15 legislation that promotes fuel choice, supports investment certainty, and contributes to a stable and fair marketplace for American consumers.
Beef industry groups seem to agree — market-based pricing, not federal intervention, best supports rancher livelihoods and long-term beef supply stability.
