By Jamie Martin
In 2024, American farmers are entering their third year of losses, with crop prices falling significantly since 2022. Corn and wheat prices are down 37%, soybeans 28%, and cotton 22%. Meanwhile, the cost to produce crops continues to rise, with the cost of producing an acre of corn up by nearly 30% since 2020.
This creates a tough financial situation for farmers, with some losing nearly $90 per acre, even on the best cropland. Data from the University of Illinois highlights this trend, showing that farmers with a 50/50 corn and soybean rotation could face substantial losses between 2023 and 2025.
In addition, the farm bill's safety nets are no longer effective. Programs like ARC and PLC haven’t been updated to reflect inflation, leaving farmers with minimal financial support. The reference prices used in these programs were last updated in 2014, but inflation has rendered them outdated.
Net farm income has fallen sharply, dropping $41 billion over the past two years. The row crop sector, including corn, soybeans, and wheat, has been hit hardest, with some sectors seeing losses of over 40%. The entire agricultural industry is feeling the strain, with layoffs across agribusinesses.
As a result, farmers are finding it harder to access credit, and many could lose their farms without economic aid. The need for a new farm bill and financial support is urgent to ensure the stability of American farming and the economy.
Photo Credit: gettyimages-eugenesergeev
Categories: National