A new report from the American Farm Bureau Federation (AFBF) says that farm financial stress is severe as U.S. farm incomes are under immense pressure.

The AFBF report points to USDA’s most recent Commodity Costs and Returns, World Agricultural Supply and Demand Estimates and Farm Sector Income & Finances reports, which all confirm that the state of the agricultural economy is dire for many producers.

Margins are below breakeven for many crops, working capital has eroded, Chapter 12 bankruptcy is on the rise, and a recent lender survey shows that profits will be elusive in 2026. Trade losses have compounded the increasing economic pressures.

“While recent trade agreements and frameworks provide optimism, products have yet to move in significant volumes, and cash prices for commodities remain under pressure,” said John Newton, AFBF’s Vice President of Public Policy and Economic Analysis. “For farmers who had to sell at harvest price lows due to a lack of storage, the benefits of recently announced trade frameworks will come too late.”

CLICK HERE to read the full report from the American Farm Bureau Federation.

Sources: American Farm Bureau Federation, NAFB News Service