Falling prices, high costs drive third straight year of losses for Arkansas row crops

Arkansas farmers face a challenging economic outlook with projected average losses of $273. 71 per acre for corn and $352. 75 for cotton in 2025, according to a report from the University of Arkansas System Division of Agriculture. This situation marks the third consecutive year of financial decline, with even record yields in 2024 failing to offset low prices and high operating expenses. Economists attribute the downturn to ample domestic and global crop supplies, including a record U.

S. corn crop and large harvests from South America. Rising production costs, particularly in fertilizer and labor, exacerbate the profitability squeeze on farmers; labor costs are expected to reach $413 million statewide. Federal aid programs, while historically helpful, are unlikely to fully mitigate the multi-year decline in net income. The report highlights a widening gap between crop prices and input costs, now the largest in 25 years, complicating the economic landscape for producers.

With financial pressures affecting farmers across the Midwest, the analysis calls 2025 one of the most challenging periods for agriculture in recent history. Arkansas farmers must navigate these challenges as they seek sustainable solutions for future profitability.