What question did this study set out to answer?

To examine the financial pressures on U.S. crop producers resulting from rising production costs and declining commodity prices.

January 22, 2026Open Access

Rising Costs Falling Prices Regional Disparities Deepen Farm Financial Stress

Key Points

To examine the financial pressures on U.S. crop producers resulting from rising production costs and declining commodity prices.
Analyzed projections for corn crop yields and market prices
Reviewed economic data from USDA Economic Research Service (ERS)
Assessed regional production cost variations
Corn production is expected to reach a record 16.8 billion bushels in 2024
Commodity prices have fallen to multi-year lows due to market oversupply
Fertilizer prices are projected to increase further, impacting future production costs
Certain regions experience greater financial stress due to differing production costs

Abstract

U.S. crop producers face mounting financial pressure as production costs remain elevated while commodity prices have fallen to multi-year lows. This year's corn crop is projected to reach a record 16.8 billion bushels, far surpassing 2024 levels and creating an oversupply that markets struggle to absorb. Combined with uncertain trade policy, prices have declined sharply. Meanwhile, forecasts indicate costs will rise further in 2025, driven primarily by higher fertilizer prices. While all crop-growing regions feel this squeeze, some face disproportionate challenges due to varying production costs across USDA Economic Research Service (ERS) farm resource regions.

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