US Row-Crop Farms Face a Fourth Consecutive Year of Losses
US row-crop operations are expected to record losses for a fourth consecutive campaign, according to the report, even as gross commodity turnover shows modest improvement. Higher expenditure on fuel, fertiliser, harvesting, drying and fieldwork has absorbed the projected gains in farm receipts.
Agricultural diesel prices have risen by 80% to about $6 a gallon, while prices for synthetic fertiliser formulations are 15% higher than a year earlier. Producers generally cannot pass these increases to buyers through commercial surcharges, leaving the additional costs in their operating accounts.
Fuel use is particularly significant during harvest. A standard combine can consume more than 150 gallons of diesel in a day. Grain drying systems also require fuel after harvest, especially to prepare corn and oilseeds for delivery to commercial elevators. Anhydrous ammonia and blended fertiliser prices are likewise near multi-year highs, making break-even targets harder to reach for conventional crop rotations.
Trade restrictions have limited overseas sales of several farm products. Retaliatory measures in important destination markets, including China, have kept exports of cotton, feed grains, pork and beef below historical levels. Oilseed shipments have recovered slightly, but overall export flows remain well below their earlier capacity, restricting price increases available to producers facing higher crop-management costs.
Financial pressure is also reflected in the number of farms and bankruptcy filings. About 200,000 agricultural operations have left commercial production across the country since 2020. Chapter 12 farm-bankruptcy filings rose by 19% in the 12 months ending in mid-2026, while agricultural lenders have reduced operating credit lines. Some producers are considering partial land sales to meet debt obligations.
The financial strain in grain production affects feed procurement for dairy and livestock businesses. Those sectors rely substantially on domestic corn and soybean-meal prices when managing feed-conversion margins. The report says that financial instability and changes in crop acreage are exposing feed markets to greater volatility, while lower diesel and chemical costs and the restoration of high-volume export routes are identified as measures for improving conditions in the rural farm economy.
