Rising Costs Hit Specialty Farmers

Rising Costs Hit Specialty Farmers
Jan 08, 2026
By Farms.com

Rising costs and weak prices leave fruit and vegetable growers under strain

Specialty crop farmers are facing serious financial pressure in 2025 as rising production costs continue to outpace farm-gate prices. These crops include fruits, vegetables, nuts, and berries that together generate more than one-third of total U.S. crop sales. Despite their economic importance, these growers have fewer safety-net and risk-management tools than other farming sectors. 

Recent studies show that labor, fertilizer, fuel, water, packaging, and compliance costs have increased sharply across major specialty crops such as almonds, apples, blueberries, lettuce, potatoes, and strawberries. At the same time, farm-gate prices have remained weak, leaving many producers unable to recover their full production costs. These six crops alone represent nearly one-quarter of all specialty crop receipts and reflect billions of dollars in estimated losses. 

Trade uncertainty has further weakened already thin margins. Export challenges, currency changes, and foreign competition have reduced demand for several crops, while imports produced under lower labor and regulatory standards have pressured domestic prices. Weather volatility, disease outbreaks, and pest pressures have also increased production risks and expenses. 

Recent federal assistance has left major gaps. Specialty crops do not qualify for the $11 billion Farmer Bridge Assistance Program. Although the U.S. Department of Agriculture has announced an additional $1 billion in support for other crops, the amount is far below documented economic needs and eligibility details remain unclear. 

Across crops, studies show that production expenses now exceed revenues for many growers. Almond producers, for example, face high orchard, water, and labor costs, while apple growers struggle with storage and replanting expenses. Lettuce growers face rising food safety compliance costs, while strawberry farmers are challenged by high labor and packaging charges. Similar patterns exist for blueberries and potatoes, where market prices remain below break-even levels. 

Without stronger and more responsive support programs, specialty crop farmers may continue to reduce investment, acreage, and workforce levels. Improving risk-management tools, increasing transparency in cost data, and expanding access to federal programs are essential steps to protect the long-term stability of this vital food-producing sector. 

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