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.
On Tuesday’s Cow Guy Close, host Scott Shellady spoke with USDA Deputy Secretary Stephen Vaden about the decision, what he saw during a recent tour of the property, and why the department believes closure is the best path forward.
The latest developments point to shifting export routes, higher congestion risk, and continuing cost pressure for grain, fertilizer, and energy shipments.
National Corn Growers First VP Matt Frostic joins us to discuss their 62nd annual yield contest, the new short-season corn pilot class, and what farmers can expect as the season gets underway.
Farm Bureau Economist Dr. Faith Parum discusses USDA’s efforts to expand fertilizer capacity, signals for farm profitability, and AFBF’s Farm Bill expectations.
Kansas Congressman Derek Schmidt joins us to discuss House passage of the Farm Bill, its potential impact on farm profitability and stability, key policy compromises, and the outlook for Senate consideration.
John Mays with Central Life Sciences joins us to discuss the importance of pest management ahead of wheat storage and how protecting grain quality can support stronger marketing opportunities.
Austin Rice with Specialty Risk Insurance shares guidance on handling storm damage, navigating the insurance claims process, and managing risk during a volatile planting season.
