Farmer Fears Over Economic Conditions

OMAHA (DTN) -- Hundreds of farmers in northeast Arkansas met Tuesday with federal officials to talk about their current financial challenges and fears they could be forced to walk away from farming.

The gathering, with a crowd estimated between 400 and 500 people, underscored that even as USDA projects overall net farm income to rise this year, income for crop farmers is actually projected to fall -- again. Nationally, cash receipts for crops are projected to fall for the third straight year, USDA reported Wednesday.

Arkansas farm groups have been sounding the alarm for weeks about the financial situation facing producers. The Agricultural Council of Arkansas has said one in three farms in the state could cease operations by next spring if there is not some type of supplemental aid to producers.

The meeting in Brookland, Arkansas, was organized by Paul McAnally, market president for Southern Bancorp out of Trumann, Arkansas. News reports said McAnally raised concerns over the 2025 crop budgets in the state in which, essentially, nothing pencils out.

"The current situation is that since 2023, row-crop farmers have suffered net losses due to high input costs and low commodity prices. Many have restructured operations, depleted equity, and relied heavily on banks just to remain in business. 2025 marks the first year in 25 years of crop financing where no workable budget exists for row crops under current price/cost conditions," McAnally was quoted in the Arkansas Democrat-Gazette.

Arkansas Ag Extension projects the state-average net returns per acre for some principal crops in the state as follows: minus $85.02 for soybeans; minus $258.84 for long-grain rice; minus $273.71 for corn; and minus $352.75 for cotton.

"Some people will do better, and some people will do worse, obviously, so that is a very generalized look, but there is really just not much here in row-crop country that is expected to pencil out," said Brandy Carroll, director of commodity activities and market information for the Arkansas Farm Bureau, in an interview with DTN.

KATV out of Little Rock interviewed a farmer who pointed out rice prices are down 40% from a year ago.

"So, after a horrible year last year where most farmers in the Arkansas Delta lost money, this year is going to be worse," Arkansas farmer Derek Haigwood told KATV. He added, "We have to have ad-hoc payments right now to make it through this year."

In the meeting, KATV highlighted comments from a sixth-generation farmer who said her family won't plant next spring, suggesting her son may not get a chance to farm. An equipment dealer also expressed concerns about customers committing suicide.

The Agricultural Council of Arkansas wrote a letter Aug. 18 to President Trump raising the "great sense of urgency" about economic conditions facing farmers and asking for "immediate assistance in delivering much-needed and meaningful support to help farmers with the pressures they face due to high input costs and depressed commodity prices."

The council cited that Arkansas farmers are projected to see a $1.145 billion shortfall for 2025, with crop expenses exceeding crop receipts.

"Without additional assistance, we fear that many family farm operations in Arkansas will be forced to shutter their operations as credit windows close."

Jay Robbins, director of national affairs for the Arkansas Farm Bureau, attended Tuesday's meeting, calling it "very powerful." Robbins said it would have been preferable had the event been held a few weeks ago during the congressional recess. Arkansas Farm Bureau leaders last week also met with Agriculture Secretary Brooke Rollins when she was in Mississippi.

"I think the message has been heard loud and clear," Robbins said.

Deputy Agriculture Secretary Stephen Vaden last week at the Farm Progress Show in Illinois suggested the Trump administration was looking at some form of "bridge" program to help producers get through the 2025-26 crop year until higher farm safety-net programs kick in next year from the budget reconciliation bill passed by Congress in early July.

Sens. John Boozman and Tom Cotton, along with Rep. Rick Crawford of Arkansas, issued a joint statement recognizing the challenges but also highlighting more than $80 billion in assistance for farmers that Congress has passed in the past year. Boozman is chairman of the U.S. Senate Agriculture Committee, while Crawford is a senior member of the House Agriculture Committee.

In a statement to DTN, Boozman noted the challenging conditions that led so many farmers to attend such an event during harvest.

"Seeing hundreds of Arkansas farmers who took time away from their farms during this time of year is a powerful image that demonstrates their concerns with the crisis facing our agriculture community," Boozman said.

Despite record yields and incredible productivity, Boozman pointed out farmers are struggling, and it's putting the future of family farms in jeopardy.

"Farmers are asking what can be done to get them through this difficult time. I'm very much in favor of looking to see how we can best help our producers and provide them with the tools to help them continue farming. USDA's swift implementation of key provisions included in the One Big Beautiful Bill Act to modernize the farm safety net will be an important first step," Boozman said.

He added, "This firsthand information is so important so we can help the administration and colleagues in Congress understand how dire the situation is for farmers. We're encouraging the administration to look at the tools it has available right now to help address these challenges in rural America. As far as I'm concerned, everything is on the table."

Also see, "2025 Net Farm Income Projected Higher, But Median Farm Income Remains in the Red," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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