New data shows wide income pressure on US producers
U.S. farmers are facing increasing financial pressure as the gap between production costs and income continues to widen. New USDA data shows that farmers are paying much more to grow food while earning less from selling crops and livestock.
By October 2025, the prices paid index, which tracks production expenses, reached 154.6. At the same time, the prices received index, which measures what farmers earn, dropped to 120.5. Both figures are compared to 2011 levels, which are set at 100. This means production costs are now more than 50 percent higher than in 2011, while income has increased only about 21 percent.
The difference between these two indexes reached more than 34 points, marking the widest spread in at least a decade. This growing gap shows rising financial strain on farm operations across the country.
The prices paid index includes many essential farm inputs such as fertilizer, fuel, feed, seed, machinery, and labor. Even though some input prices have eased slightly, they remain well above earlier levels. Meanwhile, prices for crops and livestock have fallen from recent highs.
In 2021 and 2022, higher commodity prices helped narrow the gap. However, since then, the prices farmers receive have dropped faster than production costs have declined. This trend has caused the gap to widen again.
While these indexes do not measure profit directly, they offer a clear picture of financial pressure. Many producers are now preparing for the next season with tighter margins and higher operating costs.
USDA compiles these indexes using surveys and market reports collected by the National Agricultural Statistics Service. Thousands of agribusinesses report prices for farm inputs each year. USDA also gathers data from grain buyers, livestock markets, and packing plants to track what farmers receive for their products.
This data helps show how farm economics are changing over time and highlights the growing challenges farmers face.
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