A recent study by the American Farm Bureau Federation (AFBF) reveals deepening financial distress among U.S. farmers, as agricultural incomes continue to face severe downward pressure. Data from USDA reports including Commodity Costs and Returns, World Agricultural Supply and Demand Estimates, and Farm Sector Income & Finances confirm a troubling outlook for many producers. n nProfit margins for numerous crops have fallen below break-even levels, working capital reserves have diminished, and filings under Chapter 12 bankruptcy are increasing. A lender survey cited in the report suggests that profitability will remain out of reach through 2026. Trade disruptions have further intensified economic hardship. n nJohn Newton, AFBF’s Vice President of Public Policy and Economic Analysis, noted that while new trade agreements offer some hope, actual commodity flows remain limited. “Cash prices for farm goods are still depressed,” he said. “For those who had to sell their harvest at low prices due to insufficient storage, the advantages of recently announced trade deals will arrive too late.” n nThe findings underscore the urgent need for targeted economic support to stabilize the farming sector and prevent further financial deterioration.
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A new report from the American Farm Bureau Federation (AFBF) says that farm financial stress is severe as U.S. farm incomes are under immense pressure. n nThe AFBF report points to USDA’s most recent Commodity Costs and Returns, World Agricultural Supply and Demand Estimates and Farm Sector Income & Finances reports, which all confirm that the state of the agricultural economy is dire for many producers. n nMargins are below breakeven for many crops, working capital has eroded, Chapter 12 bankruptcy is on the rise, and a recent lender survey shows that profits will be elusive in 2026. Trade losses have compounded the increasing economic pressures. n n“While recent trade agreements and frameworks provide optimism, products have yet to move in significant volumes, and cash prices for commodities remain under pressure,” said John Newton, AFBF’s Vice President of Public Policy and Economic Analysis. “For farmers who had to sell at harvest price lows due to a lack of storage, the benefits of recently announced trade frameworks will come too late.” n nCLICK HERE to read the full report from the American Farm Bureau Federation. n nSources: American Farm Bureau Federation, NAFB News Service