A Tough Farm Economy Demands Action from Congress

As a farmer, I don’t need a spreadsheet to tell me when times are hard. I see it every day and hear it in conversations with farmers across the country. The farm economy remains under real pressure, and for many farm families, the stress isn’t letting up.

USDA’s latest outlook confirms what farmers are experiencing firsthand, and it retells the storyreleased just a few months ago. USDA has now sharply lowered its 2025 farm income outlookby $25 billion, reinforcing that this downturn is deeper and more persistent than many anticipated. And in 2026, farm income is projected $48 billion below the highs we saw just a few years ago. That reality weighs heavily on the people who grow our food, fuel, and fiber.

High Costs and Low Prices Are Squeezing the Farm Economy

What makes this period especially challenging is the squeeze farmers are facing from both sides. Commodity prices remain low, while production costs continue to climb. Inputs like fuel, fertilizer, equipment, and labor are still expensive, leaving margins razor-thin, or nonexistent, for many farm families.

The beef market may be strong, but it is masking weakness across the rest of agriculture. Outside of cattle, many farmers continue to face declining receipts, weak prices, and little room to recover rising costs. Even when cash flow improves on paper, that can be a reflection of relief from temporary assistance, not improved margins.

When margins disappear, so does flexibility. It becomes harder to plan, harder to invest, and harder to weather unexpected setbacks like droughts, floods, or market disruptions. For farm families, that uncertainty affects day-to-day decisions and long-term sustainability.

Record-high debt levels and strained credit lines are forcing tough choices on farm families who already operate in one of the most unpredictable businesses there is. Farm bankruptcies have increased for the second year in a row, and we continue to see farms closing at an alarming rate, with more than 160,000 lost since 2017.

Farmers are resilient, but resilience alone can’t carry the weight of this prolonged economic strain. A strong farm economy isn’t just about individual farms. It’s about the stability of rural communities, local businesses, and the entire food supply chain Americans rely on.

A New Farm Bill Is Critical for the Farm Economy

This is exactly the moment when federal farm policy matters most—and why we urgently need a new, modernized farm bill. Outdated loan limits and underinvestment in research, conservation,and rural development leave farmers with fewer options when prices are low and expenses remain high. A new farm bill is an opportunity to modernize these programs, so they actuallywork in today’s farm economy, not the economy of nearly a decade ago.

At the same time, farmers can’t afford to wait. While longer-term reforms are debated, farmers are facing immediate financial strain that threatens their ability to secure operating loans and plant another crop. Short-term economic assistance is needed now to help farmers bridge the gap and keep operations afloat until lasting solutions are in place. Recent investments and programs like the Farmer Bridge Assistance Program are a welcome first step, but they fall short of addressing the full scope of losses farmers are facing.

Farmers’ Voices Matter in Today’s Farm Economy

One thing I’ve learned over the years is that we can see real change when farmers speak up. Policymakers need to hear directly from the people living this reality. That starts with grassrootsengagement. And that’s where this Farm Bureau family comes through for our farms and our communities.

If you’re feeling the strain of this farm economy, I encourage you to visit our Action Center to send a message to your members of Congress and share your story. When farmers engage, it strengthens our collective voice and helps move policy in the right direction.

The American Farm Bureau will keep working for solutions in Washington, but we’re strongest when we do this work together.