Farm Profitability Sinks

January 21, 2025

Only half of agricultural borrowers are expected to be profitable in 2025, according to an August 2024 agricultural banker survey across the country. After several strong profitable years in 2021-2023, farm and ranch profits are expected to drop abruptly in 2024 with no relief in 2025. High input costs, low commodity prices and higher interest rates have combined to wring profits out of farming, particularly for those farming operations that lack scale in corn and soybean production.