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Financing the Farming Operation

 

 

Resources and Updates

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Documents & Links

September 4, 2025 Update:

 

With projections for farm income to be down, Congress funneled more money into direct farm programs and disaster assistance, providing an income boost to eligible farmers. See Economic Support for details. 

 

The latest projections from USDA ERS, including that government support are reported at:  Farm Sector Income & Finances - Farm Sector Income Forecast, USDA, ERS (Sept. 3, 2025). From this report:

  • Net farm income, a broad measure of profits, is forecast to increase in 2025. Forecast at $179.8 billion for 2025, net farm income would be $52.0 billion (40.7 percent) higher than in 2024. Net cash farm income is forecast at $180.7 billion for 2025, an increase of $40.1 billion (28.5 percent) relative to 2024 (not adjusted for inflation).

  • In inflation-adjusted 2025 dollars, net farm income is forecast to increase by $48.8 billion (37.2 percent) from 2024 to 2025, and net cash farm income is forecast to increase by $36.5 billion (25.3 percent) compared with the previous year. If realized, both measures in 2025 would be above their 2005–24 averages (in inflation-adjusted dollars).

Farmers continue, however, to be experiencing low prices, higher input costs, and uncertainly about markets as a result of the Trump administration's erratic and tariff-based trade policies. Cost of production exceeds market price for many producers. Government contract cancellations, delayed payments, and program cuts have hurt individual farmers, particularly smaller operations, as described below. Those who do not benefit from the federal farm programs may be at particular risk.

 

April 14, 2025 Update:  Insightful article about a new way to address depression and suicide in the face of farm financial distress: Farmers face one of the highest rates of suicide. This social worker believes the solution is buried in their land, The Guardian (Apr. 10, 2025)

 

February 24, 2025: Inside the USDA, Staffers Struggle with Trump’s Funding Freeze (One office in the Agriculture Department provides a window into how efforts to comply with Trump’s DEI order have halted some grant payments, even as judges have ordered the federal government to end its broad funding freeze.) Wash. Post (Feb. 24, 2025)

February 24, 2025: The Farm Bureau is reporting a significant increase in farm bankruptcies. See Ryan Hanrahan, Farm Bankruptcies Increased 55% in 2024, Farm Policy News, Farm Doc, Univ. of Illinois.

February 20, 2025: USDA says it will release $20 million of frozen farmer funds, Reuters (Feb. 20, 2024). The USDA announced that it will release approximately $20 million in conservation contract funding.This funding relates to contracts previously entered into by farmers and the USDA. Withholding this funding was not permitted under a federal court order. The USDA announcement indicates that this is the "first tranche" of funding paused by the administration and that its review of other funding continues, despite the court order. See, U.S. Judge says Trump administration violated order lifting spending freeze, Reuters (Feb. 10, 2025).

February 18, 2025:  There is considerable fear and uncertainty among farmers and rural communities as aid that they depend on is withheld, contracts are placed on hold for review, and markets are lost​. Trump administration actions up to this point have not been good for farmers or the farm economy. The following news segment explains: 

Farmers feeling weight of Trump policies with shutdown of aid, PBS NewsHour (Feb. 17, 2025)

See also:  Letter from President of Farmers Union, Trump’s funding freeze leaves American farmers like me out in the cold, Rob Larew (Feb. 16, 2023)

The National Farmers Union is collecting information from farmers who have contracts with the USDA that are not being honored or program benefits that have been frozen or denied. Please pass this collection website on to farmers and ranchers effected. Anonymous posting is an option. 

Websites
 

University of Illinois provides excellent information on both current developments and longer term analysis:

General Legal Resources
 

 

Agricultural Law Resources

 

 

 

 

 

 

 

 

 

2010 - present

2010 - present

Combining corn
Baling hay
Susan Schneider

Susan Schneider began her legal career advising family farmers in financial distress. She integrates this practical experience into all of her teaching and writing. She now serves as the William H. Enfield Professor of Law and Director of the LL.M. Program in Agricultural & Food Law at the University of Arkansas School of Law.

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