Farmers Face Fourth Consecutive Year of Losses Amid Rising Costs and Trade War
American farmers are struggling to break even due to rising costs and declining crop prices. Rick Telesz, who raises soybeans, corn, and dairy cows in western Pennsylvania, is worried about his future prospects. 'Am I going to make money this year?' he asks.
The main culprit behind the financial woes of farmers like Telesz is the increasing cost of inputs such as fertilizer and fuel. Fertilizer prices have risen by 15% compared to last year, while diesel fuel has jumped by 80%. The average retail price of diesel fuel is around $6.50 a gallon, according to AAA.
The trade war with China has also had a significant impact on farmers' bottom line. China is historically the third-largest market for U.S. farm exports, but it slashed its purchases last year in retaliation for President Trump's tariffs. Farm sales to China this year have only partially recovered.
Despite projections that farm revenue will increase this year due to rebounding crop prices and higher sales of soybeans, corn, and cotton, most farmers who grow row crops are expected to lose money in 2026 for the fourth consecutive year. 'They're paying way more to grow a crop and they're not making near enough for it,' says Faith Parum of the American Farm Bureau Federation.