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-Income-Forecast-Sept-2025.png

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.

Related Stories
Rotational grazing can improve pasture use and soil health while helping control feed and drought-related risk.
NAAA’s Andrew Moore joins us to discuss the role of ag aircraft in crop protection and emerging concerns surrounding stolen agricultural drones.
Dr. Peter Beetham with Cibus joins us to discuss the Supreme Court review of a case about glyphosate use, its potential impact on Bayer and Roundup, farmers who use the products, and the ag industry as a whole.
Shaun Haney joined us to discuss rising concerns over farmland ownership in Canada, actions being considered by provinces and farm groups, and the potential impacts of tighter regulations.

LATEST STORIES BY THIS AUTHOR:

Market reaction was bearish for corn and soybeans, with analysts noting that abundant supplies amid tepid demand could keep price pressure on agricultural commodities.
The Farm Bureau’s honor highlights the important role farm dogs play on operations across the country, serving as dependable workers and trusted companions.
Logistics capacity remains available, but winter volatility favors flexible delivery and marketing plans. NGFA President Mike Seyfert provides insight into grain transportation trends, trade policy, and priorities for the year ahead.
Rising adoption of GLP-1 drugs may gradually reshape food demand, with potential downstream effects on protein markets and consumer purchasing patterns.
Traders are keeping a close eye on China’s soybean purchases as markets track export sales, shipments, and progress toward the ‘magical’ 12 million ton target promised last year.
Leadership development and bipartisan engagement remain central to advancing agriculture’s priorities in 2026.