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.
In a call with reporters on Tuesday, RFD-TV News reporter Lily Raby asked Senate Ag Committee member Sen. Chuck Grassley (R-IA) for his opinion on Des Moines school leaders’ decisions to halt ag education programs, which also threatens the future of the city’s FFA chapter.
In his latest Firm to Farm blog post, Roger McEowen discusses the new EPA/COE clarifications concerning WOTUS. The new measures have important implications for farmers, ranchers, and rural landowners.
Trinity Barth and Liliann Tjaden-Duff joined us on Market Day Report to express their concerns about the future of the program that has, for 50 years, given students of all backgrounds a path to agriculture careers.
Agricultural irrigation return flow exemption and “Maui factors” are the topics of today’s Firm to Farm blog post by RFD-TV ag tax and legal expert Roger McEowen with Kansas’ Washburn School of Law.
Jack Daniel’s will end its Cow Feeder Program, which served around 100 livestock operations near the distillery, and redirect spent grains to its anaerobic digester.
“A government shutdown impacts all Americans and has serious consequences, including for farmers. It just adds additional uncertainty, disrupts critical services.”
