“… The U.S. farm sector finds itself in another rough patch. Net farm income declined 4% this year to $141 billion after falling about 20% last year, according to the Agriculture Department. Weaker prices for commodities such as soybeans and wheat have weighed on farmers’ earnings after growers in the U.S. and elsewhere reared big crops, swelling supplies. Their costs for essentials such as fertilizer and
equipment are also higher.
… President-elect
Donald Trump has also
pledged tariffs on Mexico and China, key importers of U.S. crops, and
Canada, a major fertilizer producer. Government policies that subsidize biofuel production, which can boost crop prices for farmers, could also be in flux under the new administration, analysts and company executives said.
…
Financial pain on the farm comes after one of the ag industry’s strongest runs on record. Grain prices soared during the Covid-19 pandemic in 2021 and again in 2022 after Russia invaded Ukraine, one of the world’s top breadbaskets. The war
pushed up prices for wheat and corn, contributing to
rising global food prices. It also pushed net
farm income to a record in 2022, the USDA said.
Since then, grain exports have
resumed via the Black Sea, and better weather in key growing regions in South America helped bolster global crop supplies, pushing prices down.
In Iowa, the top corn-producing state, farmland values decreased by 3% this year, breaking a five-year streak of rising prices, according to an annual survey by Iowa State University. Farmland value often represents the largest portion of a farmer’s assets, making up roughly 80% of their total wealth, according to the USDA. …”