Operating Loan Alarm Bells Ringing

Federal officials recently testified before the Senate Appropriations Committee, addressing the impact of natural disasters and economic challenges on agriculture. Georgia and North Carolina senators highlighted the devastation to farmers in their states after Hurricanes Helene and Milton struck this fall.

Beyond those storms, lawmakers pointed to broader struggles faced by row crop farmers nationwide. Senator Cindy Hyde-Smith of Mississippi sounded the alarm, saying, “Many farmers across the country are on the verge of going out of business due to hurricanes, wildfires, drought, and other weather-related events that wiped out entire crops.”

However, it’s not just weather taking a toll. Hyde-Smith stressed that high input costs and commodity prices below break-even levels are also pushing farmers to the brink. She added that, for the first time in her career, lenders and bankers are warning they may not be able to finance some farmers in 2025.

The hearing emphasized the urgent need for support to protect the agricultural backbone of the U.S. economy. With disaster recovery efforts underway and economic pressures mounting, lawmakers are working to find solutions to keep farms operating and rural communities afloat.