NASHVILLE, Tenn. (RFD-TV) — Southern row-crop producers closed 2025 facing another season marked by weather extremes, tight margins, and shifting acreage decisions — a combination that kept many farms near or below breakeven for the third consecutive year. For growers across the region, higher production costs and persistently weak commodity prices continued to outweigh localized yield gains.
Extension economists from Alabama to Texas report similar themes. Widespread prevented planting, late-season drought, and new pest pressures — including the expanding cotton jassid — lowered yield potential and added to input and management costs. Even where corn, cotton, peanut, or soybean yields exceeded five-year averages, many producers struggled to capture price rallies due to limited storage, early harvest timing, or cautious marketing strategies.
Financial stress intensified as producers faced negative returns, high interest expenses, and tighter credit standards. Several states highlighted growing concerns about depleted working capital and multi-year operating debt that will carry into 2026 — especially on row-crop-focused farms without livestock income to offset losses.
Acreage patterns shifted notably. Corn gained ground at the expense of cotton in multiple states, while peanuts expanded in Georgia, and rice acreage climbed in Louisiana. Soybeans held their footprint in some areas but declined sharply in others amid lower prices and early-season weather delays.
Looking ahead, Extension specialists warn that producers will enter 2026 with elevated cost structures, uncertain price trends, and heightened reliance on ad hoc assistance, making crop insurance, rotations, and marketing discipline critical for financial survival.
Farm-Level Takeaway: Southern producers head into 2026 with thin margins, tighter credit, and rising agronomic risks despite scattered yield improvements.
Tony St. James, RFD-TV Markets Specialist
The WASDE/Crop Production combo will be the first full read on supply, demand, and yield that could move basis and hedging plans since the government shutdown more than a month ago.
November 03, 2025 09:34 AM
·
A rescheduled WASDE, China’s soybean squeeze, barge bottlenecks, and premium beef demand all collide this week — with cash decisions, basis, and risk plans on the line.
November 03, 2025 09:23 AM
·
China’s grain expansion model may be hitting its limit. Lower prices, high rents, and policy fatigue threaten future output — with ripple effects across global feed and oilseed markets.
November 02, 2025 05:06 AM
·
High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
November 01, 2025 06:54 AM
·
U.S. Rep. Dusty Johnson (R-SD) shares his outlook on the developing U.S.-China Trade agreement, and the ongoing impact of the federal government shutdown—now stretching past four weeks—on rural communities and producers.
October 31, 2025 01:35 PM
·
October 31, 2025 01:30 PM
Market analyst and friend of the show, Shawn Hackett, says Brazil’s shifting use of crops for biofuel production is a significant factor.
October 31, 2025 01:17 PM
·
Caleb Ragland, president of the American Soybean Association (ASA), shares his reaction to news of soybean sales to China, which is considered both “welcome news” and a return to near-normal trade relations.
October 31, 2025 12:26 PM
·
Rabobank’s outlook signals a tightening margin environment, emphasizing the need for cost control, trade stability, and clearer policy signals heading into 2026.
October 31, 2025 11:44 AM
·
