Farm Economy
It’s not just planting cotton farmers are battling this year. Soybeans are also struggling in the ground, and the corn is wind whipped or battered by hail and sand. With farmers staring at financial losses already this year, some worry this could push a growing number of them out of business.
Knowing the final plant population as well as the uniformity of the stand can guide you in deciding whether you will benefit most from keeping the current crop or ripping it out and replanting, says Missy Bauer, Farm Journal Field Agronomist.
The Association of Equipment Manufacturers reports that April tractor and combine sales were both down significantly from 2024, yet it’s possible farmers start buying new machines again this fall.
“China and Brazil are getting together. They’re going to build infrastructure, and they’re going to make SAF and they’re going to build railroads, and it’s not good for us and our future. That’s why we need new markets,” says Iowa farmer Tim Burrack.
The April Ag Economists’ Monthly Monitor found most agricultural economists think it could be 2026 before we see Congress final pass a new bill. One reason why is the fact Congress passed $10 billion in ECAP payments late last year.
The market might not be as hot as it was two years ago, but it still sizzles. The economics of low supply and strong demand are keeping prices fairly stable with only slight reductions seen this spring, depending on the location and quality, says Colton Lacina, Farmers National Company.
While 56% of farmers say they believe the ongoing trade disputes with China and other countries will hurt them financially this year, 70% say they believe the U.S. and agriculture specifically will benefit in the long-term.
The stakes are high with the latest trade war. While the risks of losing more market share into China are a concern, the upside potential of a trade deal with China could be monumental.
Agriculture is an export dependent business. At peak uncertainty, the industry could go either way: Gain ground with new trade deals or take a big hit as exports further decline.
A new report from Bloomberg Law shows family farm bankruptcies had already increased by 55% last year compared to 2023, and to start 2025, the number of bankruptcies is already exceeding the same time last year.