what Can Be Controlled in Ag Economics

Megan Roberts, an ag economist with Compeer, part of the Farm Credit System, says that 2025 has been an eventful year for agriculture, marked by volatility across the economy, trade grain and livestock markets, with farmers unable to control market prices or input costs. Roberts says success comes down to focusing on the individual operation by understanding cost of production and identifying break-even price targets. She walks through economic models and projections to explain how long the current industry downturn may last.

We have a lot of supply out there on the grains and oil seed side.

“And going back to economics 101, if you have a lot of supply and not enough demand to to eat up that supply, you're going to face lower prices. So for our row crops, this cycle is likely to continue into 2026 for livestock, a little bit of a different situation. We have lower supply and we have relatively good demand. We have strong demand for proteins right now, and those cycles are looking to also continue into 2026 producers also have questions about interest rates and when relief might come.”

Roberts says there is some optimism that rates could improve as the industry moves into 2026.

I'm Lorrie Boyer for the Ag Information Network.