Recovery of American agriculture is delayed

Eulerpool Research Systems Jan 13, 2025

Takeaways NEW

  • Recovery of the US agricultural sector delayed by falling prices and rising costs.
  • Economists do not expect a modest recovery until 2026.
Falling crop prices and rising costs for seeds and machinery are delaying the expected recovery in the American agricultural sector into next year, according to the forecast by agricultural lender AgAmerica on Monday. U.S. net farm income has been in decline since its record high in 2022, as farmers now struggle to operate profitably in a market with an abundant supply of corn and soybeans. Additionally, there are fewer government aid payments as pandemic-related support is phased out. "Commodity prices are falling from their record highs, government support is decreasing, and all indicators suggest that the cyclical nature of agriculture could lead us into an economic cooldown," AgAmerica stated in its report. Economists expect a modest recovery that is not anticipated to begin until 2026. The U.S. Department of Agriculture will release its first forecast for net farm income for the year 2025 in the coming month.

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