2025 Looks bleak for Tennessee farmers

Last year’s hardships set tone for difficult upcoming season

The agricultural landscape in Tennessee faces continued difficulties into 2025 following a year plagued by adverse weather conditions and economic downturns.

According to the University of Tennessee Institute of Agriculture, 2024 witnessed significant disruptions due to drought, agricultural land loss, and unfavorable trade conditions, deeply affecting state agriculture sectors.

Andrew Muhammad, a professor of agricultural economics at UTIA, shared insights from the annual economic report, stating, "The state’s agricultural and forestry industries directly and indirectly contributed $103 billion to the Tennessee economy."

Despite this contribution, Muhammad noted the severe impact of current trends: "2024 was a struggle for many of our producers and sectors.

Next year could also be difficult, with trade policy uncertainty, low crop prices, drought- and hurricane-reduced feed supplies and high input costs."

Key crops such as corn, cotton, soybeans, and wheat experienced price falls, with anticipated gross cash receipts dropping significantly from the previous year. This downturn is expected to challenge the financial viability of crop production in 2025, potentially forcing consolidation within the sector.

Despite the bleak outlook for crops, the livestock sector saw a minor increase in the value of animal products, providing some stability. Yet, the overarching economic and policy environment remains fraught with challenges, including high interest rates and inflation, which continue to strain farmers' operations.

For further information, refer to the University of Tennessee's agricultural reports available on their website.