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 U.S. Department of Agriculture (USDA) is investing now to make markets less volatile for ranchers over the long term and more affordable for consumers, according to a press release.
Elizabeth Strom with the American Society of Farm Managers & Rural Appraisers (ASFMRA) joined us to share the latest on harvest progress and market activity in her area.
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National Pork Board Chief Sustainability Officer Jamie Burr shares a closer look at the Pork Checkoff’s Pork Cares Farm Impact Report, a research program to increase trust in the pork supply chain.
Brooks York with Agrisompo joined us on Monday’s Market Day Report with some guidance on how producers can navigate their crop insurance claims for unsold grain crops.
For many farm businesses, property taxes on business assets have become a significant and highly visible expense, threatening liquidity, discouraging investment, and creating a disproportionate burden when compared to other industries.
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