By Jamie Martin
Across the United States, farmers and ranchers are confronting a difficult economic season as high production costs and declining crop prices weigh heavily on their finances. According to Faith Parum, economist for the American Farm Bureau Federation, nearly every type of producer is feeling the strain.
“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."
Interest rates are also playing a major role, as many producers continue to depend on operating loans to cover seasonal expenses. Labour, equipment repairs, and machinery costs remain significant burdens. While fertilizer prices have not returned to 2022 levels, they continue to trend upward, adding to farmers’ concerns.
Different crops are showing varied loss levels, but all are facing negative returns. Cotton growers face losses exceeding $300 per acre—the highest among major crops. Peanuts, corn, soybeans, rice, sorghum, and wheat each show losses between $100 and $175 per acre.
"Cotton’s our largest loss at over $300 an acre, and so that's going to be pretty high and really hurt their operations. Peanuts are at a $173 loss, corn at a $169 loss, soybeans at a $114 loss, and rice at a $154 loss. Sorghum and wheat also operating at a loss, well over a hundred dollars," said Parum. "So, all of our row-crop producers are really struggling, and this isn’t the first year they’ve operated at a loss."
As farmers enter the post-harvest period, many are closely reviewing their financial options. With prices low and expenses high, financial stability remains one of the toughest challenges for America’s agricultural producers.
Photo Credit: gettyimages-artqu
Categories: National