Reference News, January 17 report: According to Reuters, January 15 report, it is a discouraging time in the entire U.S. agricultural region. Farmers are facing another planting season with low prices, high costs, and difficulty in deciding whether or not to continue operating. Banks have cut off their loan channels for some farmers who urgently need funds. As meat processing plants closed and agricultural equipment manufacturers scaled back, thousands of workers are losing their jobs.
The pressure within the U.S. agricultural economy is rapidly spreading to rural areas across the country, as evidenced by the stalled tractors in dealer parking lots and the profit-squeezed agricultural enterprises. The weak crop prices and high production costs have persisted for three years. Interviews with producers, agricultural economists, and industry trade organizations show that this year's situation is equally severe. They say any turnaround now depends on a series of fragile events, including whether President Trump's trade war can be resolved, whether China can resume purchases, and whether domestic biofuel policies will become more favorable.
U.S. farmers harvested large quantities of corn and soybeans last autumn, exacerbating global food supply overstock. Soybean growers also lost billions of dollars in sales to China, which has been the world's largest buyer of soybeans so far. To avoid tariffs on U.S. imports imposed by Beijing (a retaliation against tariffs imposed by Trump on Chinese goods), Chinese animal feed manufacturers turned to South American suppliers. Farmers welcomed President Trump's recent $1.2 billion aid plan, but producers and economists say these funds will not be sufficient to offset the losses caused by low crop prices and lost export opportunities. Economists say information from rural areas in the United States is becoming increasingly clear: if policymakers want farmers to continue planting under low prices and high costs, they need to provide more than just temporary relief. It is expected that production costs, especially fertilizers, will remain high for the next year, leading to staggering input costs. Credit channels are tightening, making it more difficult for farmers to obtain short-term loans needed to purchase supplies and plant spring crops.
This profit squeeze is expected to continue, especially for field crop growers. The U.S. Department of Agriculture predicts that the total production cost of corn will increase by about 3% in 2026 compared to 2025, and the cost of soybeans is expected to rise by 3.1%.
Meanwhile, according to the latest data from the U.S. Department of Agriculture, the average farm gate price for corn harvested in the fall of last year and marketed this year is estimated at $4.10 per bushel, and soybeans at $10.20 per bushel, both below the levels of 2023. Lenders are becoming increasingly cautious. Cooperative Bank, one of the largest agricultural credit institutions in the United States, said the quality of its loan portfolio deteriorated in the third quarter and expressed concerns about weak commodity prices and high input costs.
It remains unclear what the full extent of financial pressure is. For some operators, especially field crop growers, time is running out.
U.S. court records show that in the first nine months of 2025, 293 farmers or farm operators filed for bankruptcy under Chapter 12 of the U.S. Bankruptcy Code, nearly 36% higher than the total number of filings for the whole of 2024.
At the same time, data from the Agricultural Equipment Manufacturers Association shows that tractor sales declined by nearly 10% last year, and combine sales fell by more than 35%.
Professor Terry Griffin of Kansas State University's Department of Agricultural Economics analyzed data from the U.S. Fire Administration and found that the number of combine fires in Kansas has surged as farmer incomes have declined in recent years.
Griffin said, "It's like you have an old car, you don't have money to maintain it, you don't change the oil anymore, and you don't keep it clean. Maintaining equipment takes money." (Translated by Ge Xuelai)
Original: toutiao.com/article/7596317277449765439/
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