Vegetable Markets Mixed as Record Yields Offset Acreage

Record yields are cushioning production declines, but softer prices underscore the importance of cost control and market timing for vegetable growers.

grocery store prices_photo by Gorodenkoff via Adobe Stock_240749444.jpg

Photo by Gorodenkoff via Adobe Stock

NASHVILLE, TENN. (RFD-TV) — U.S. vegetable markets posted mixed results in 2025 as record yields for several crops helped offset lower acreage, while grower prices weakened across much of the fresh market sector. USDA’s latest Vegetables and Pulses Outlook highlights how weather, productivity gains, and shifting demand shaped outcomes heading into the 2025–26 marketing year.

Potatoes remain a key example of this dynamic. USDA forecasts 2025 U.S. potato production at 412.1 million hundredweight, down 2 percent from last year, as harvested acreage declined 3.5 percent. That reduction was partially offset by a record-high average yield of 461 cwt per acre. Despite the smaller crop, fresh potato grower prices during the first two months of the marketing year trailed year-ago levels, reflecting ample supplies and softer demand.

Fresh market vegetables broadly faced lower prices in 2025. Lettuce, onions, tomatoes, broccoli, cauliflower, and celery all posted lower year-to-date average grower prices through October compared with 2024, driven by more favorable growing conditions. Some price improvement emerged late in the season, but it was insufficient to offset earlier declines.

Processing vegetables showed more resilience. California processing tomatoes, which dominate the processing sector, are expected to post record yields, largely compensating for reduced contracted acreage and stabilizing overall output.

Beyond traditional vegetables, mushroom production continued to grow modestly, with total sales volume rising 2 percent in 2024/25 and total value reaching $1.1 billion. Pulse crops experienced sharp production increases due to higher yields, although grower prices trended lower as supplies expanded.

Farm-Level Takeaway: Record yields are cushioning production declines, but softer prices underscore the importance of cost control and market timing for vegetable growers.
Tony St. James, RFD-TV Markets Specialist
Related Stories
While agriculture doesn’t predict every recession, the sector’s long history of turning down before the broader economy
ARC-CO delivers the bulk of 2024 support, offering key margin relief as producers manage tight operating conditions.
Higher menu prices and tax-free tips are reshaping restaurant economics, sharply lifting server take-home pay even as diners face higher out-the-door costs.
USDA’s steady yields and heavy global stocks keep grains range-bound unless demand firms or South American weather becomes a real threat.
As economic pressures continue to squeeze agriculture, ag lenders are signaling a more cautious outlook for farm profitability heading into next year, particularly among grain producers facing lower commodity prices and higher operating costs.
USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Weather-driven transportation disruptions can tighten logistics, affect basis levels, and delay grain movement during winter months.
Lower milk prices may pressure margins, but strong cattle values could soften near-term financial impacts.
Record ethanol production, coupled with stronger demand, supports corn use despite tighter margins elsewhere.
A new maritime biofuels coalition aims to position ocean shipping as a significant growth market for U.S. crops and waste-derived fuels.
Larger operations maintain cost advantages, while softer equipment sales suggest producers are pacing machinery upgrades amid tighter margins.
Transportation access, legal disputes, and fertilizer freight costs will directly influence input pricing and grain movement in 2026.