Farmers Urgently Need Economic Assistance

By John Newton

Key Takeaways

1. Farm financial stress is severe and persistent. Margins are below breakeven for many crops, working capital has been eroded, Chapter 12 farm bankruptcies are on the rise and according to a recent survey of commercial lenders, profits will remain elusive going into 2026.
2. Trade losses have compounded economic pressures. Farmers have experienced multi-billion-dollar export declines in some of our largest trading markets, including China. Trade frameworks have been announced, but increased export volumes have yet to materialize and cash prices remain at or below levels seen in early 2025.
3. Without action, long-term viability is at risk. Additional financial support is critical to offset trade losses and provide a bridge until farm bill enhancements from the One Big Beautiful Bill Act go into effect. This will stabilize the farm economy, sustain rural economies and maintain affordable food prices.

USDA’s most recent Commodity Costs and Returns, World Agricultural Supply and Demand Estimates and Farm Sector Income & Finances reports confirm what those in agriculture have known for several years: U.S. farm income is under immense pressure as input costs have increased dramatically while crop prices have fallen sharply – resulting in crop and specialty crop margins that have been at or below breakeven for several consecutive years.

While recent trade frameworks provide optimism for increased exports and market access, products have yet to move in significant volumes and cash prices for commodities such as corn, soybeans, wheat and cotton remain under pressure and are at or well below levels experienced at the beginning of the year. For farmers who had to sell at harvest price lows due to the lack of storage, the benefits of recently announced trade frameworks will come too late.

Due largely to the Chinese falling short of their Phase 1 commitments, and more recent trade uncertainty, farmers across the Corn Belt pulled back on soybean acres and instead planted nearly 100 million acres of corn. At an average total cost (including fixed and variable operating costs) of putting the crop in the ground of approximately $900 an acre, corn farmers committed nearly $90 billion to sow a crop this spring. Now, even with an expected record yield of 186 bushels per acre and a $4 per bushel national average price, the return over total cost is estimated at a loss of over $150 per acre, with total losses nationwide eclipsing $15 billion.

The math is the same for every major crop as well as specialty crops and it’s been that way for several consecutive years, with combined annual returns below total costs (for nine principal crops) from the 2023/24 to 2025/26 crop years at -$20.2 billion, -$34.8 billion and -$34.6 billion, respectively, and before crop insurance indemnities and other support.