Agricultural Economics

Many farmers, ranchers, and landowners should brace for a marginal squeeze in 2025, as net farm income continues to decline—but at a slower rate than in 2024. Lower prices for crops, particularly grains, oilseeds, and cotton, are partially offset by strong cattle prices and lower feed costs. Stabilizing input expenses offer some relief, though higher labor and equipment costs remain a challenge. Debt levels are expected to rise, but system-wide leverage is still at historically low levels. Operating loans have become harder to secure amid declining crop prices, while a higher-for-longer interest rate environment will elevate expenses for farmers with short-term variable loans or those approaching loan renewals. Farmers should weigh debt management options now to preserve capital if liquidity is a concern.