Nebraska Farmers Face Billions in Losses Amid Inflation and Crop Price Volatility

Nebraska farmers are facing significant losses amid high inflation, low commodity prices, and volatile production costs. According to the American Farm Bureau Association, major row crop losses are projected to exceed $31 billion in 2026.

Abygail Petersen, an economist and policy analyst with the Nebraska Farm Bureau, said that the current market conditions will likely affect farmers for at least two more years. The USDA's season average price for corn is approximately $4.20 per bushel, translating to a loss of $167 per acre, totaling around $1.7 billion in losses.

For corn, 21% of costs are attributed to land and rental expenses, while 61% of operational costs are due to fertilizer alone. Soybeans face similar pressure, with losses of around $138 per acre and total losses exceeding $700 million.

Petersen noted that government payments can help cushion the blow for farmers in the meantime, but emphasized the need for greater certainty around year-round E-15 fuel sales and trade policy to stabilize crop prices.