WILLAGRI
U.S. farmers are facing a recession marked by declining incomes due to falling crop prices and rising costs. A multibillion-dollar bailout is underway to support farmers. Agricultural subsidies have historically helped to alleviate the hardships of difficult times. But the current challenges seem likely to last. Prices of basic raw materials continue to fall while production costs remain high.
Some key figures illustrate the extent of this recession:
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- In 2024, net farm income declined by 4%, reaching $141 billion after a decline of about 20% the previous year.
- The cost of a bag of corn seed has risen from $150 to $230 in a few years.
- The latest federal spending bill includes $10 billion in support for farmers, as well as $21 billion in disaster relief.
- In Iowa, farmland values fell 3% this year, snapping a five-year streak of gains.
- Losses per acre for corn producers are expected to be larger in 2025 than in the previous two years.
- Cargill announced layoffs of 5% of its global workforce, or about 8,000 workers.
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- Grain prices fell after a period of high demand during the Covid-19 pandemic and following Russia’s invasion of Ukraine.
Source : Wall Street Journal