Costs Keep Climbing: Farmers Face Rising Interest, Lower Prices

Farmers know it better than anyone—costs keep climbing, even as prices for what you grow or raise keep slipping. The American Farm Bureau’s latest Market Intel Report, built on USDA’s 2025 Farm Production Expenditures Annual Summary, puts numbers to what producers already feel.

In 2024, U.S. farm spending dipped just under 1% from the record high set in 2023, totaling $477.6 billion. On paper, that might sound like relief, but most folks aren’t feeling it. The average farm still spent more than $254,000—up 33% from a decade ago. Lower inflation helped cool supply costs a bit, and cheaper feed prices gave livestock producers breathing room. But the bigger picture is tough: crop prices are sliding faster than expenses, widening a gap that’s been growing five years.

It may sound like a drum we keep beating, but the perspective matters: interest expenses are up 46% in the past decade. With inflation, weaker exports, and shrinking commodity prices, analysts will be watching the Fed’s September 16–17 meeting for any hint of relief.