Inflation, interest rates, high input costs and emerging threats challenge farmers’ ability to stay profitable.

U.S. farmers are navigating a complex economic landscape, marked by challenges such as lower commodity prices and high production costs — including high interest rates, noted Bernt Nelson, an economist for the American Farm Bureau Federation (AFBF), last week.

At the heart of these challenges is persistent inflation, especially for farm inputs. Nelson said despite headlines declaring “cooling inflation,” the reality on the ground for farmers is different.

“When inflation cools, prices don’t come back down,” he said last week at the 2025 Iowa State University (ISU) Swine Day. “All that means is that things are getting more expensive slower than before.”

Because of this, a farmer’s ability to reach a breakeven point is much more...