U.S. farmers struggle amid higher production costs
As the fall harvest season continues, many farmers and ranchers across the United States are taking a close look at their financial records. The agricultural economy has become challenging, especially for row crop producers.
Faith Parum, an economist at the American Farm Bureau Federation, explained that falling commodity prices and increasing input costs have squeezed farmers’ profits. “So, our row crop farmers, but really, all of our farmers and producers, are being squeezed by falling prices and really high input costs," said Parum. "We've seen an increase in a record-high production cost this year, and that's affecting row crop farmers, our specialty crop farmers, livestock producers, all across the board."
Farmers are devoting a growing share of their budgets to basic production expenses. Fertilizer prices are once again increasing—though still below 2022 highs—while fuel, chemicals, and energy costs remain elevated. Parum also noted that interest expenses are climbing as farmers depend more on operating loans to manage yearly production cycles. Rising labor, machinery, and repair costs add further strain.
The financial impact varies by crop type, but nearly all are operating at losses. Cotton producers face the largest losses, exceeding $300 per acre. Peanuts, corn, soybeans, rice, sorghum, and wheat are also losing more than $100 per acre.