Crop Farmers Struggle as Beef Cattle Profits Soar
A YouTube video posted by Patrick Shivers caught the eye of the Team at Farms.com. Shivers has a YouTube channel that shows how farm machinery works and provides an overview of farming practices. However, in the second half of his video posted August 9, Shivers shares that used machinery prices have hit unprecedented lows, with recent auctions in the Southeast United States setting record bargains.
He says for those unfamiliar with the market, these prices are “bottom of the barrel,” far below typical values, and the trend has persisted for about two years.
This downturn is tied to a harsh economic reality explains Shivers: 2025 marks the third consecutive harvest season with negative margins for many southeastern farmers. Simply put, it now costs more to grow crops than farmers receive when selling them. This story is not news to farmers, but his stark comments while anecdotal reflect the harsh realities many farmers currently face.
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.
Watch the video below.