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.
Seth Tucker of Tucker Farms, a first-generation Arkansas farmer, says rising input costs are forcing changes to his operation, including stepping away from rice this season.
Rich Nelson with Allendale joined us to break down early planting progress, market expectations, and what producers should keep an eye on as the season moves forward.
Dr. Michael Langemeier with Purdue University provided perspective on the improving farmer sentiment and the trends shaping the agricultural economy moving forward.
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American Farmland Trust shares guidance, research, and policy solutions to help farmers navigate the growing threat of PFAS, or “forever chemicals,” contaminating U.S. farmland.
Dr. Jeffrey Gold, president of the University of Nebraska-Lincoln, joins us on Rural Health Matters to discuss winter safety reminders and preparedness.
