John Newton:
The American Farm Bureau Federation says the financial pressure on U.S. crop producers is expected to intensify.
John Newton, vice president of public policy, says AFBF is projecting more than $32 billion in losses for major row crops in 2027.
“We’ve seen historic inflation across the farm economy going back to 2021,” he said. “This year, we saw a lot of volatility in our fertilizer prices and we continue to see volatility in our fuel prices.”
The latest Farm Bureau analysis states, “Corn losses are projected to increase from $131 per acre in 2026 to $167 per acre in 2027. Soybean losses are projected to increase from $80 per acre to $138 per acre, wheat losses from $114 per acre to $145 per acre and cotton losses from $342 per acre to $406 per acre. Rice, sorghum, oats, barley and peanuts are also projected to remain below breakeven.”
Newton tells Brownfield low commodity prices are also squeezing farmers.
“Our commodity prices have come down quite a bit from where they were in 2023,” he said. “So you’ve had a cost price squeeze that has been hitting farm country for several years in a row.”
AFBF recently sent a letter to congressional leaders in support of market relief.
“For many of our farmers this is the worst economic environment on the row crop side that they have been in in decades,” Newton said. “For our young farmers this is the highest input cost they’ve ever seen and the highest interest rate environment they have ever seen.”
Newton says longer-term policy solutions are also needed including a modernized farm bill, interstate commerce protections, risk management coverage for specialty crop growers, and policies that improve demand like year-round E15.
