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US farm recovery not expected until 2026 as crop prices stay low

Net farm income drops below 2022 record

Bloomberg NewsbyBloomberg News
January 13, 2025
in Agriculture
Reading Time: 1 min read
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Low crop prices and high costs for seeds and machinery mean a rebound in the American farm sector won’t start until next year, according to an outlook Monday from farm lender AgAmerica.

US net farm income has been in a downturn since hitting a record in 2022, with farmers now struggling to profit in a market awash in ample supplies of corn and soybeans. Growers are also getting less government payments as aid tied to pandemic relief expires.

“Commodity prices are coming off record highs, government support is dwindling and indicators across the board suggest the cyclical nature of agriculture may be steering us toward an economic slowdown,” AgAmerica said in the report. “Economists anticipate a modest recovery starting in 2026.”

The US Department of Agriculture will make its first net-farm income outlook for 2025 next month.

Tags: agriculturebloombergequipment financefarm profits
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