Rising costs and weak crop prices deepen pressure on US farms
U.S. farmers continue to face serious financial challenges as rising production costs and weak commodity prices pressure farm profitability.
According to a recent analysis by the American Farm Bureau Federation (AFBF), producers of major row crops are expected to face another year of negative returns in 2027. Estimated losses across nine major crops could reach $32 billion without additional federal assistance.
Corn, soybeans, wheat, cotton, rice, peanuts, barley, oats, and sorghum are all projected to remain below breakeven levels. Corn and soybean producers account for the largest share of expected losses.
Farmers are also dealing with higher fertilizer and fuel expenses. Global instability and tensions in energy markets have added further uncertainty to production costs heading into the next growing season.
Specialty crop growers are experiencing similar difficulties. Producers of fruits, vegetables, nuts, and other specialty crops continue to face rising labor, compliance, energy, and input costs. While some markets have seen temporary price improvements, many growers remain unprofitable due to reduced production volumes and shrinking margins.
Data also shows declining acreage in several specialty crop sectors, reflecting long-term economic pressure. Industry observers warn that continued financial strain could reduce domestic production capacity and increase dependence on imports.
Federal assistance programs introduced in recent years have provided important support, and improvements to farm safety-net programs are expected to help producers. However, many farm groups believe additional economic assistance will be needed to offset ongoing losses and rising costs.
AFBF and other agricultural organizations are also advocating for long-term policy solutions. These include stronger risk management tools, year-round E15 availability, agricultural labor reforms, and updated farm policies designed to improve market stability.
Industry leaders say both immediate assistance and long-term reforms will be important to help farmers remain competitive, support rural communities, and maintain a reliable domestic food supply.
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