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Specialty Crops: Mounting Cost Pressure, Limited Risk Protection

By Daniel Munch

For specialty crop farmers, 2025 has offered little relief from mounting financial pressures. Markets that once promised stable margins are now defined by volatility, with production expenses outpacing price gains and exports at risk under global trade uncertainties. Despite contributing over $75 billion in farm-gate value — over a third of all U.S. crop sales — specialty crop producers have fewer risk-management and safety-net options to help weather these challenges. The result is a widening gap between cost and revenue that threatens profitability across much of the farm economy.

crops

Specialty crops encompass more than 350 commodities, from almonds and apples to lettuce and lemons, and account for roughly one-fifth of U.S. agricultural cash receipts across 220,000 farms. Yet the diversity that defines the sector also amplifies its vulnerability. Each crop relies on distinct production systems, marketing channels and labor demands, making it difficult to design one-size-fits-all safety nets or risk-management tools.

These structural realities compound the challenges growers face from unique weather and pest pressures, evolving regulatory requirements and the often-perishable nature of their products. Many specialty crops are sold in markets with few buyers and limited price transparency, leaving producers unable to hedge against downturns or forecast cash flow with confidence. Buyers of specialty crops often look for the lowest price in the global marketplace to ensure consumers have access to cost-effective produce, putting high-cost American production at a disadvantage. Growing consumer expectations for fresh produce in every season have led to more fruits, vegetables and nuts being imported, putting added pressure on U.S. specialty crop farmers. The absence of robust insurance or futures markets further amplifies exposure, while complex marketing systems often delay disaster aid for years after losses occur.

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