America’s farm economy is in a dire situation. Farmers are being squeezed from every direction: production costs are high and rising, commodity prices are low, and existing aid, while very much appreciated and welcomed, is unfortunately falling short. The result? Farms on the edge of bankruptcy, growing mental health strain in rural communities, and real fears that agriculture is drifting toward a crisis reminiscent of the 1980’s.
Here’s the Reality on the Ground:
1. Input costs are crushing farmers. Fertilizer, fuel, labor, and seed costs have continued to rise in recent years, pushing breakeven prices higher across nearly every major crop. According to USDA data, production expenses across all areas have risen over 30% since 2020. Farm interest expenses alone have increased by nearly 71% since 2020.
2. Commodity prices aren’t keeping up. Large crop harvests and global oversupply have driven prices down for the third straight year, leaving many producers operating below breakeven – even after accounting for crop insurance, farm programs, and ad hoc assistance. Based on current average input costs and market conditions, the gross revenue of a crop will not cover costs, let alone make a profit.
3. Aid is appreciated – but more must be done. Programs like Farmer Bridge Assistance provide critical short-term relief, but it’s only a fraction of the multiyear losses farmers are facing – losses which are totaling over $65 billion for crop years 2023-2025, even after farm programs and economic assistance. Many farmers are burning through working capital, tapping into emergency savings and equity, just to stay afloat. These measures can only keep family farms running for so long and are putting future generations at a disadvantage.
4. Improvements are coming – but still far off. Key improvements to the safety net for commodity programs and crop insurance through the reconciliation package are coming, but many benefits won’t be felt on the farm until later this year. Producers are making plans and having tough conversations on the future of their operations now.
This isn’t just a farm problem, it’s a problem for our entire nation. 91% of agricultural economists believe U.S. agriculture is already in recession, and farm bankruptcies are rising, with Chapter 12 bankruptcy filings surging: the first half of 2025 saw a 148% increase over the same time period in 2023. Rural hospitals, schools, and agribusinesses feel the impacts too as financial stress ripples through local economies. Needless to say, we also rely on America’s farmers and ranchers to feed and clothe America.
Food security is national security.
The Bottom Line:
Safety net improvements are coming, but farm families won’t see the benefits until later on in 2026. Farmers need help, and they need it now. Without swift Congressional action to provide emergency assistance to farmers reeling, many producers may not be able to plant another crop.
Congress must act.
The future of family farms, and the security of our food system, depends on it.
Need a Farm Bill refresher? Find a high-level, title-by-title history and overview of this crucial piece of legislation that impacts every American, from the field to the dinner plate, here. Plus, learn about agricultural policy straight from America’s heartland on the Groundwork podcast.