The chair of the US Senate Agriculture Committee said farmers are experiencing serious financial losses, while more than two dozen former agricultural leaders warned lawmakers of the risk of a “widespread collapse of American agriculture,” Reuters reports.
According to economists, production costs in the United States — including seeds, fertilizers and other inputs — have risen over the past three years, while abundant grain supplies have limited farm profits. The situation has been further complicated by trade disputes that affected US agricultural exports, as well as stricter immigration policies that increased labor costs and, in some cases, left crops unharvested in the fields.
Some farmers are now preparing for potential losses for a fourth consecutive year. Tight credit conditions are forcing farms with limited cash flow to reconsider planting decisions and reduce fertilizer use.
In a letter to Congress, former USDA officials and industry representatives said the current administration’s policies have harmed farmers. The previously announced $12 billion aid program will cover only a fraction of producers’ losses, according to agricultural economists and bankers.
The US Department of Agriculture (USDA) said the administration is using every available tool to support farmers and ensure continuity of production.
Senator John Boozman, chair of the Senate Agriculture Committee, told a conference of state agriculture officials in Washington that crop producers are “losing money, lots of money.”
Financial indicators confirm the pressure on the sector. A Federal Reserve survey showed that new farm operating loans in the fourth quarter of 2025 rose by nearly 40% compared to a year earlier, while the average size of these loans was 30% larger.
According to a survey by Purdue University and CME Group, the share of farmers expecting difficult financial conditions in the coming year rose to 59% in January, up from 47% in December. Meanwhile, 46% of producers expect prolonged financial hardship for US agriculture over the next five years, compared to 24% a month earlier.
Analysts note that the combination of high costs, market risks and financial pressure is creating a challenging environment for US agriculture, and the effectiveness of government support will be a key factor in stabilizing the situation.
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