How the Economy Is Squeezing Farmers
The economy is squeezing farmers from both sides.
What they earn is dropping while what they spend stays high. Commodity prices have fallen from recent highs, but input costs like land, equipment, labor, and interest remain elevated, leaving many farms barely breaking even.
Net farm income is forecast to decline again in 2026, even though it remains slightly above long-term averages, so it doesn’t feel like a “good” year on most operations. Government payments now make up a large share of farm earnings, and without them many family farms would be deep in the red.
To cope, farmers are tightening budgets, renegotiating with lenders, and looking for extra income streams like livestock, direct-to-consumer sales, or custom work. In a tight-margin economy, knowing true costs, watching cash flow, and staying flexible on marketing and spending are the keys to survival.
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