Declining Farm Economy Continues to Pressure Profitability

By Faith Parum

For most of the country, farmers face a difficult farm economy – as crop prices continue to decline and production expenses remain high. Strong yields provide little relief and imbalance in the market has driven profit margins to the point where breaking even is unachievable. Commodity prices have plummeted from their 2022 highs, creating a persistent imbalance in the farm economy that places real strain on the financial health of row crop farmers across the country.

Commodity Prices Declining

After the high prices of 2021 and 2022 driven by strong global demand, persistent drought and supply chain disruptions driven geopolitical tensions, markets have cooled. Corn that once topped $7 per bushel is closer to $4 today, down 54%. Soybeans have slipped below $10 per bushel after running at $15 just three years ago (decrease of 58%). Wheat prices have decreased 51% despite weather worries and cotton has come down 42% from COVID-19 pandemic highs.