Significant US farm losses persist, despite federal assistance
Recorded: Jan. 22, 2026, 11:03 a.m.
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Significant Farm Losses Persist, Despite Federal Assistance | Market Intel | American Farm Bureau Federation MENU WHO WE ARE NEWSFarm Bureau® NewsNewslineIn the NewsNews ReleaseMARKET INTELLatest AnalysisVIEWPOINTSFocus on AgricultureThe ZiplineEVENTS2026 YF&R Leadership ConferenceInternational Year of the Woman Farmer ACE SummitADVOCACYiFarmiVoteTake ActionTake Action NEWS news Home Newsline In the News News Release MARKET INTEL market intel Home VIEWPOINTS viewpoints Home The Zipline EVENTS events Home International Year of the Woman Farmer ACE Summit ADVOCACY advocacy Home Action Center Grassroots Legal Advocacy INITIATIVES initiatives Home Ag Innovation Challenge Partners in Advocacy Leadership Farm Dog of the Year Farm State of Mind County Activities of Excellence Safety & Health Network Veteran Farmer Award of Excellence PROGRAMS programs Home Promotion & Engagement Women’s Leadership LEADERSHIP DEVELOPMENT leadership development Home ABOUT about Home What We Do Get Involved Meet our Leadership From the Desk of President Duvall Fast Facts About Ag Staff Directory Careers JOIN join Home Member Benefits ISSUES Farm Bill TRENDING TOPICS Trade > | Jan 21, 2026 light dark Significant Farm Losses Persist, Despite Federal Assistance TOPICS FBA ECAP Faith Parum, Ph.D. Faith Parum, Ph.D. Key TakeawaysPer-acre production costs for all nine principal row crops are projected to rise again in 2026, continuing a troubling trend that began after 2021.Inflated operating costs remain the primary drivers of higher breakeven prices, with limited relief expected in the near term.Recent programs have offset a portion of losses, but do not fully close the gap between costs and market returns, leaving many farmers potentially operating below breakeven for another year.Specialty crop growers face similar issues as row crop farmers,but limited data makes per-acre loss estimates challenging.The USDA-Economic Research Service (ERS) December update to Commodity Costs and Returns provides a comprehensive look at per-acre production costs for the nine principal row crops: corn, soybeans, wheat, cotton, rice, barley, oats, peanuts and sorghum. At a high level, ERS projects average total costs per acre to increase for every crop in 2026, underscoring the persistence of elevated production expenses across U.S. agriculture. When operating expenses and farm-wide costs like equipment, land and management are combined, costs vary widely by crop. In 2025, forecasted total per-acre costs are $1,308 for rice, $1,166 for peanuts, $943 for cotton, $890 for corn, $658 for soybeans, $498 for oats, $491 for barley, $443 for sorghum, and $396 for wheat. Looking ahead, ERS projections for 2026 suggest continued upward pressure across most cost categories, with total cost increasing anywhere from 2.2% to 3.3%. Amongst the nine principal crops, wheat ($409 per acre), sorghum ($458) and oats ($513) remain at the lower end of the production cost spectrum, while soybeans ($678) and barley ($507) fall in the mid-range in 2026. Cotton ($965), peanuts ($1,194) and rice ($1,336) remain the most expensive crops to produce on a per-acre basis. Operating costs—expenses directly tied to producing a yearly crop, such as seed, fertilizer, chemicals, fuel and labor—substantially vary across crops. In 2025, total operating costs ranged from $155 per acre for wheat to more than $764 per acre for rice and $631 per acre for peanuts. In 2026, these costs are expected to rise, ranging from $774 per acre for rice and $160 per acre for wheat. While select inputs have moderated slightly from recent peaks, overall operating expenses remain well above pre-2021 levels. Rising costs since 2020 have been driven primarily by sharp increases in interest expenses (+71%), fertilizer (+37%), fuel and oil (+32%), labor (+47%), chemicals (+25%) and maintenance (+27%), alongside notable gains in seed (+18%) and marketing costs (+18%). Losses Persist Even After FBA and ECAP Against this backdrop of elevated costs, commodity prices have remained under pressure, limiting farmers’ ability to cover their costs through the marketplace alone. As a result, many farms are projected to experience losses for a fourth or fifth consecutive year, even after accounting for crop insurance indemnities and ad hoc assistance. The Farmer Bridge Assistance (FBA) Program and the Emergency Commodity Assistance Program (ECAP) provide important near-term support. However, ECAP was designed to address 2023 and 2024 losses, rather than 2025 and later production challenges. For both programs, payments are calculated on a per-acre basis. However, when compared to current per-acre production costs and weak commodity prices, these payments generally cover only a share of losses rather than restore profitability. In fact, returns over total costs for all nine principal row crops are projected to remain negative on a per-acre basis even after accounting for federal assistance. Based on loss calculations used in the Farmer Bridge Assistance Program, rice producers face losses of roughly $210 per acre, followed by cotton ($202), oats ($159), peanuts ($131), sorghum ($91), corn ($87), wheat ($70), soybeans ($61) and barley ($42). In total, net losses across the sector are estimated to exceed $50 billion over the past three crop years.For many farms, aid helps slow the erosion of working capital but does not fully offset negative margins. As a result, producers continue to absorb multiyear losses that strain balance sheets, tighten cash flow and complicate access to operating credit. These loss estimates reflect national averages; actual costs of production and returns vary by region, management decisions and ownership structure. For example, producers who own their farmland may face lower total costs by avoiding cash rental expenses, resulting in higher returns.Action Alert: America’s Farmers and Ranchers Are Facing an Economic Breaking Point
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The American Farm Bureau Federation’s Market Intel report, released in January 2026, paints a stark picture of persistent economic challenges facing U.S. farmers and ranchers. Economist Faith Parum’s analysis, drawing on the USDA’s Economic Research Service (ERS) data, reveals that per-acre production costs for the nine principal row crops are projected to continue rising in 2026, extending a troubling trend beginning after 2021. The core driver of these escalating costs is the rise in operating expenses—including seed, fertilizer, fuel, labor, chemicals, and maintenance—which have dramatically increased since 2020, exceeding pre-2021 levels. Parum’s report details that total per-acre costs range from $396 for wheat to $1,336 for rice, and $1,194 for peanuts, signifying significant variations across crop types and regions. Despite the availability of programs like the Farmer Bridge Assistance (FBA) Program and the Emergency Commodity Assistance Program (ECAP)—designed to offer support for 2023 and 2024 losses—these measures, calculated on a per-acre basis, only partially mitigate the impact, failing to fully restore profitability for many operators. The report highlights that losses accumulated over the last three crop years—estimated to exceed $50 billion—continue to strain farm finances, contributing to reduced working capital and difficulties accessing operating credit. Parum emphasizes that these figures represent national averages, with actual costs and returns varying considerably based on factors such as farm ownership structures and regional variations. Beyond the nine principal row crops, the report recognizes the challenges faced by specialty crop growers, noting the limited data available to fully assess losses within this sector. The 2024 Marketing Assistance for Specialty Crop Program (MASC) offered a preliminary measure, but persistent challenges remain, driven by issues such as rising input costs, trade instability, and labor constraints. The study concludes that strengthening support for all agricultural sectors is critical to maintaining a resilient U.S. food system. ERS projections indicate that elevated input costs and increasing breakeven prices are a persistent concern, while commodity prices remain insufficient to offset these expenses. While the One Big Beautiful Bill Act (OBBBA) is anticipated to provide some relief, the report underscores the need for further, long-term policy improvements to stabilize farm finances and address the profound economic pressures impacting U.S. agriculture. |