He outlines how the financial strain has led to a sharp rise in bankruptcies. One regional bankruptcy attorney reported filing at least one farm bankruptcy every week since January an alarming rate.
Lenders are also bracing for more hardship. Multiple financial institutions have predicted that 2025 will be the market’s lowest point, even worse than 2023 and 2024, which farmers widely regard as the worst years of their careers-worse even than the 1980s farm crisis.
In fact, every farmer spoken to confirmed losing money in both years, and 2025 margins are looking even more unfavorable he says.
With farms closing and banks unable to continue lending to operations that can not repay loans, equipment is flooding the market. However, demand is weak because most row-crop farmers have little to no disposable income. This imbalance is driving machinery prices to historic lows.
Except for the beef cattle industry. Prices for beef cattle have reached record highs, breaking new records almost weekly in recent months. Producers in this sector are enjoying strong profits, and many are taking advantage of the low machinery prices to invest in tractors and other equipment.
The stark contrast between struggling row-crop farmers and thriving beef producers underscores the importance of diversification. Relying on a single crop or market can be financially risky says Shivers.
While it’s unclear when conditions will improve for the crop sector, one lesson is certain states Shivers: diversification remains a vital survival strategy in unpredictable agricultural markets.
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