US Farming Statistics 2025 | Key Facts on US Farming

US Farming Statistics

Farming in America 2025

The American agricultural landscape continues to evolve dramatically as we move through 2025, presenting a complex picture of both challenges and opportunities for farmers across the nation. From the rolling plains of the Midwest to the orchards of California, US farming remains a cornerstone of the national economy while navigating unprecedented shifts in production methods, market dynamics, and environmental considerations. The sector demonstrates remarkable resilience despite facing headwinds from fluctuating commodity prices, rising production costs, and changing global trade patterns that reshape how America feeds the world in this modern era.

As technological innovation accelerates and farm operations consolidate, the industry finds itself at a critical juncture where traditional farming practices intersect with cutting-edge agricultural technology. The 2025 farming statistics reveal a sector characterized by fewer but larger operations, increased mechanization, and growing dependence on precision agriculture techniques. Government support programs, particularly disaster assistance payments, play an increasingly vital role in maintaining farm profitability, while livestock sectors show stronger performance compared to crop production. Understanding these farming trends in the US 2025 provides essential insights into food security, rural economies, and the future direction of American agriculture as the nation balances domestic food production with international market demands.

Interesting US Farming Facts and Latest Statistics 2025

Farming Metric 2025 Value Key Details
Total US Farms 1.88 million Down 8% from 2.04 million in 2017 Census
Total Farmland 876 million acres Decreased 2.1 million acres from 2023
Average Farm Size 466 acres Slight increase from 464 acres in 2024
Net Farm Income $179.8 billion Forecast increase of 40.7% from $127.8 billion in 2024
Family-Owned Farms 95% Representing the vast majority of US operations
Small Family Farms (under $350k sales) 85% Account for only 14% of agricultural product value
Large-Scale Family Farms ($1M+ sales) Less than 4% Produce 51% of all agricultural product value
Government Farm Payments $40.5 billion Increase of over 301% from $10.9 billion in 2024
Total Farm Cash Receipts $535.2 billion Forecast increase of 4.7% from 2024 levels
Cattle and Calves Inventory (July 2025) 94.2 million head First July inventory report since 2023
Hog and Pig Inventory (September 2025) 74.5 million head Down 1% from September 2024
Corn Production Forecast 16.7 billion bushels Record high, up 13% from 2024
Soybean Production Forecast 4.29 billion bushels Down 2% from 2024 levels
Wheat Production 1.93 billion bushels Down 2% from 2024 production
Average Farm Worker Wage (April 2025) $19.52 per hour Up 3% from April 2024 reference week

Data Source: USDA National Agricultural Statistics Service (NASS), USDA Economic Research Service (ERS), Farm Income and Wealth Statistics, September 2025 releases

The numbers paint a compelling picture of transformation across American agriculture in 2025. The continued decline in farm numbers coupled with stable or increasing production demonstrates how efficiency gains and technological advancement enable fewer operations to feed more people. The dramatic surge in government payments, primarily driven by disaster assistance from the American Relief Act of 2025, underscores the financial pressures facing producers and the critical role federal support plays in maintaining farm viability during challenging economic conditions.

What stands out most dramatically is the concentration of production among larger operations, where farms with annual sales of $1 million or more represent less than 4% of all farms yet generate more than half the nation’s agricultural output value. This consolidation trend reflects economies of scale in modern agriculture, where substantial capital investments in equipment, technology, and land become necessary to remain competitive in increasingly globalized markets. Meanwhile, small family farms continue to dominate numerically but contribute a smaller share of total production, often specializing in niche markets, direct-to-consumer sales, or part-time farming operations that supplement other income sources.

Net Farm Income in the US 2025

Income Measure 2025 Forecast 2024 Estimate Change
Net Farm Income $179.8 billion $127.8 billion +$52 billion (+40.7%)
Net Cash Farm Income $180.5 billion $144.0 billion +$36.5 billion (+25.3%)
Net Farm Income (Inflation-Adjusted) $179.8 billion $131.0 billion +$48.8 billion (+37.2%)
Gross Cash Farm Income (GCFI) $623.9 billion $584.4 billion +6.8%
Total Farm Cash Receipts $535.2 billion $511.2 billion +$24.0 billion (+4.7%)
Crop Receipts $236.6 billion $242.7 billion -$6.1 billion (-2.5%)
Animal/Animal Product Receipts $298.6 billion $268.6 billion +$30.0 billion (+11.2%)
Direct Government Payments $40.5 billion $10.1 billion +$30.4 billion (+301%)
Production Expenses $467.5 billion $455.5 billion +$11.9 billion (+2.6%)

Data Source: USDA Economic Research Service, Farm Income and Wealth Statistics, September 2025 forecast

The net farm income projections for 2025 reveal a remarkable turnaround from the previous year’s difficulties, though the improvement requires careful interpretation. The forecast 40.7% increase to $179.8 billion represents one of the largest year-over-year gains in recent memory, yet this headline number masks underlying structural challenges facing American producers. The single largest driver of this income surge stems from government disaster assistance payments totaling approximately $35.2 billion, primarily through the Disaster Relief Supplemental Appropriations Act addressing losses from 2023 and 2024 natural disasters. Without this extraordinary federal support, farm income would tell a far less optimistic story.

Breaking down the components reveals diverging fortunes across agricultural sectors. Animal and animal product receipts show robust growth with a projected $30 billion increase (+11.2%), driven by strong performance in cattle, eggs, hogs, broilers, and turkey markets. Conversely, crop receipts face headwinds with a forecasted $6.1 billion decline (-2.5%), reflecting lower prices and reduced sales for major commodities including soybeans, corn, and wheat despite generally adequate production levels. This sectoral split demonstrates how livestock producers benefit from favorable market conditions and relatively lower feed costs, while crop farmers struggle with oversupplied global markets and competitive pressure from South American grain exports. Production expenses continue their upward trajectory, increasing $11.9 billion to reach $467.5 billion, with livestock purchases accounting for the largest component of cost increases due to record-high cattle prices, creating ongoing margin pressure for producers navigating volatile input markets.

Total Number of Farms in the US 2025

Farm Category 2024 Number 2023 Number Percentage Change
Total US Farms 1.88 million 1.89 million Down slightly
Farms Since 2017 Census 1.88 million 2.04 million (2017) Down 8%
Farms with Sales Under $1,000 N/A N/A Data varies by state
Farms with Sales $1,000-$9,999 Variable Variable Declining trend
Farms with Sales $10,000-$99,999 Variable Variable Declining trend
Farms with Sales $100,000-$249,999 Variable Variable Declining trend
Farms with Sales $250,000-$499,999 Variable Variable Stable
Farms with Sales $500,000-$999,999 Variable Variable Increasing
Farms with Sales $1,000,000+ Approximately 75,000 Variable Up 40-65% since 2017

Data Source: USDA National Agricultural Statistics Service, Farms and Land in Farms 2024 Summary, February 2025

The total number of farms in the United States continues its gradual decline, with 1.88 million operations recorded in 2024, representing an 8% decrease from the 2.04 million farms counted in the 2017 Census of Agriculture. This long-term consolidation trend, which accelerated sharply between 1935 and the early 1970s before moderating substantially, reflects fundamental shifts in agricultural economics where economies of scale, mechanization, and capital intensity favor larger operations. The decline occurs unevenly across farm size categories, with the number of small family farms falling approximately 10% for low-sales operations and 7% for moderate-sales operations since 2017, while mid-size, large, and very large farms experienced increases of 2%, 40%, and 65% respectively during the same period.

The changing farm demographics tell a story of structural transformation where traditional small-scale diversified operations give way to specialized, capital-intensive enterprises optimized for efficiency in competitive global markets. Family-owned farms still represent 95% of all US farms according to the 2025 Census of Agriculture Typology Report, maintaining agriculture’s character as primarily a family business despite consolidation pressures. However, the economic power within this family farm structure has shifted dramatically toward the largest operations, with farms generating $1 million or more in annual sales representing less than 4% of total farms but operating approximately 50% of farmland and producing 51% of agricultural product value. Smaller operations increasingly serve specialized markets, pursue part-time farming as supplemental income, or focus on direct-to-consumer sales channels that bypass traditional commodity marketing systems, carving out niches where scale disadvantages matter less than product differentiation and customer relationships.

Total Land in Farms in the US 2025

Land Metric 2024 2023 Change
Total Land in Farms 876 million acres 878 million acres -2.1 million acres
Total Land Since 2017 876 million acres 900 million acres (2017) Down 3%
Average Farm Size 466 acres 464 acres +2 acres
Farmland Operated by Farms Under $100k Sales 25.9% Variable Declining share
Farmland Operated by Farms $500k+ Sales 50.0% Variable Increasing share
Farmland Operated by Farms $1M+ Sales Variable 1.49 million acres less (2023) +1.49 million acres

Data Source: USDA National Agricultural Statistics Service, Farms and Land in Farms 2024 Summary, February 2025

Total land in farms across the United States reached 876 million acres in 2024, representing a 2.1 million acre decrease from the previous year and a 3% decline from the 900 million acres recorded in the 2017 Census of Agriculture. This gradual reduction in farmland reflects multiple pressures including urban sprawl, conversion to non-agricultural uses, land retirement into conservation programs, and economic factors that make farming financially unviable on marginal lands. The decrease occurs despite agriculture’s critical importance to the national economy, highlighting ongoing tensions between development pressures, conservation priorities, and food production needs in a growing nation.

The distribution of this shrinking farmland base reveals the same consolidation dynamics evident in farm numbers, with larger operations capturing increasing shares of available agricultural land. The most striking shift in 2024 saw producers in the $1 million or more sales class operate 1.49 million more acres than in 2023, demonstrating how financial resources enable successful operations to expand their land base through purchases or rentals from exiting farmers. Currently, 25.9% of all farmland is operated by farms with less than $100,000 in sales, while 50.0% of farmland belongs to operations generating $500,000 or more annually, illustrating the concentration of land resources among economically viable enterprises. Average farm size increased modestly to 466 acres in 2024 from 464 acres the previous year, continuing a slow upward trend from the 440 acres recorded in the early 1970s but remaining far below the peak consolidation rates of earlier decades. This relatively stable average masks significant regional variations, with Western states featuring much larger ranch operations averaging over 1,000 acres while Eastern and Southern states maintain smaller, more intensive farming operations on considerably less land per farm unit.

Crop Production Statistics in the US 2025

Crop 2025 Forecast 2024 Production Change Yield per Acre
Corn for Grain 16.7 billion bushels 14.9 billion bushels +13% 188.8 bushels/acre (record high)
Soybeans 4.29 billion bushels 4.37 billion bushels -2% 53.6 bushels/acre (record high)
All Wheat 1.93 billion bushels 1.97 billion bushels -2% 52.7 bushels/acre
Winter Wheat 1.36 billion bushels 1.35 billion bushels +1% Variable by region
Durum Wheat 87.4 million bushels 80.1 million bushels +9% Variable
Spring Wheat 484 million bushels 543 million bushels -11% Variable
Cotton (All) 13.2 million bales 14.4 million bales -8% 862 pounds/acre
Corn Planted Acreage 97.3 million acres 91.9 million acres +5% N/A
Soybean Planted Acreage 80.9 million acres 86.7 million acres -4% N/A
Wheat Planted Acreage 45.5 million acres 46.0 million acres -1% N/A

Data Source: USDA National Agricultural Statistics Service, Crop Production Reports August-September 2025

Crop production forecasts for 2025 present a mixed outlook with corn setting new records while other major crops face production challenges. The corn crop is forecast at an unprecedented 16.7 billion bushels, representing a 13% increase from 2024’s 14.9 billion bushels, driven by both expanded acreage and a record-breaking average yield of 188.8 bushels per acre. This remarkable yield performance, up 9.5 bushels from the previous year, reflects favorable growing conditions, advanced genetics, and precision agriculture techniques that optimize inputs and management practices. As of August 3, 2025, 73% of the corn crop was rated in good or excellent condition, 6 percentage points above the same period in 2024, supporting optimistic production forecasts despite periodic weather concerns.

Soybean production tells a different story, with output expected to decline 2% to 4.29 billion bushels from 2024’s 4.37 billion bushels, primarily due to reduced planted acreage rather than yield performance. The soybean yield is actually forecast at a record high 53.6 bushels per acre, up 2.9 bushels from 2024, but planted acreage decreased 4% to 80.9 million acres as farmers shifted to more profitable corn production. This acreage shift reflects relative commodity price relationships, with the corn-to-soybean price ratio becoming more favorable for corn than it has been in several years, encouraging producers to allocate more land to corn at soybean’s expense. Wheat production faces a 2% decline to 1.93 billion bushels, with winter wheat production up slightly at 1.36 billion bushels (+1%), durum wheat increasing 9% to 87.4 million bushels, but spring wheat falling sharply by 11% to 484 million bushels. Cotton production is forecast at 13.2 million 480-pound bales, down 8% from 2024, with yields expected to average 862 pounds per harvested acre, reflecting both reduced acreage and slightly lower productivity compared to the previous year’s 886 pounds per acre.

Livestock Inventory in the US 2025

Livestock Type Inventory (Latest 2025) Previous Period Change
Cattle and Calves (July 2025) 94.2 million head 86.7 million (January 2025) First July report since 2023
Cattle and Calves (January 2025) 86.7 million head 87.7 million (January 2024) Down 1%
Beef Cows (July 2025) 28.7 million head 27.9 million (January 2025) Increasing
Milk Cows (July 2025) 9.45 million head 9.35 million (January 2025) Slight increase
Cattle on Feed (July 2025) 13.0 million head 14.3 million (January 2025) Variable by season
Calf Crop Estimate 33.1 million head 33.5 million (2024) Slightly down
Hogs and Pigs (September 2025) 74.5 million head 75.1 million (June 2025) Down 1% from Sept 2024
Market Hogs (September 2025) 68.5 million head Variable Majority of inventory
Breeding Hogs (September 2025) 5.93 million head Variable Stable

Data Source: USDA National Agricultural Statistics Service, Cattle Report July 2025, Hogs and Pigs Reports 2025

Livestock inventories in 2025 show the cattle industry beginning recovery from multi-decade lows while the hog sector maintains relatively stable numbers. The cattle and calves inventory reached 94.2 million head as of July 1, 2025, marking the first July inventory report since 2023 and providing updated insight into the cattle cycle dynamics. Earlier in the year, the January 1, 2025 inventory stood at 86.7 million head, down 1% from 2024 and representing one of the lowest cattle inventories since the early 1950s. This bottom of the cattle cycle resulted from years of herd liquidation driven by drought conditions, high feed costs, and challenging economic conditions that pressured producers to reduce breeding stock rather than retain replacement heifers for future production.

The breakdown of cattle categories shows 28.7 million beef cows as of July 2025, indicating gradual herd rebuilding as producers respond to favorable market conditions and adequate forage availability in many regions. Milk cow numbers reached 9.45 million head in July 2025, up slightly from 9.35 million in January 2025, demonstrating relative stability in the dairy sector despite ongoing consolidation and efficiency gains that allow fewer cows to produce more milk. Cattle on feed totaled 13.0 million head in July 2025, reflecting the seasonal patterns of feedlot placement and marketing cycles that move cattle through the production system. The calf crop for 2025 is estimated at 33.1 million head, down slightly from 33.5 million in 2024, consistent with the smaller breeding herd but positioning the industry for gradual expansion as market signals encourage retention of female cattle for breeding purposes rather than marketing them for beef production.

The hog and pig inventory stood at 74.5 million head as of September 1, 2025, down 1% from September 2024 but up 1% from June 2025, showing the typical quarterly fluctuations in swine inventory related to farrowing cycles and market hog production. Of this total, 68.5 million represented market hogs destined for slaughter, while 5.93 million were kept for breeding purposes to maintain future production capacity. Between June and August 2025, 34.1 million pigs were weaned on US farms, down 3% from the same period in 2024, reflecting producer adjustments to market conditions and profitability outlooks. Iowa maintained its position as the leading hog-producing state with 25.1 million head, followed by Minnesota with 8.75 million and North Carolina with 7.80 million, demonstrating the geographic concentration of hog production in regions with established processing infrastructure, available feed supplies, and environmental regulations that accommodate intensive livestock operations.

Farm Cash Receipts and Income Sources in the US 2025

Income Source 2025 Forecast 2024 Estimate Change
Total Farm Cash Receipts $535.2 billion $511.2 billion +$24.0 billion (+4.7%)
Crop Receipts Total $236.6 billion $242.7 billion -$6.1 billion (-2.5%)
Animal/Animal Product Receipts $298.6 billion $268.6 billion +$30.0 billion (+11.2%)
Cattle Receipts Increasing Variable Strong growth
Hog Receipts $29.9 billion $27.3 billion +$2.6 billion (+9.5%)
Broiler Receipts $47.0 billion $45.4 billion +$1.6 billion (+3.5%)
Egg Receipts $28.5 billion $21.0 billion +$7.5 billion (+35.4%)
Milk Receipts $50.2 billion $50.7 billion -$500 million (-1%)
Direct Government Payments $40.5 billion $10.1 billion +$30.4 billion (+301%)
Disaster Assistance Payments $35.2 billion Minimal Major increase

Data Source: USDA Economic Research Service, Farm Sector Income Forecast, September 2025

Farm cash receipts for 2025 demonstrate the diverging performance between livestock and crop sectors, with total receipts forecast to increase $24.0 billion (+4.7%) to reach $535.2 billion. The animal and animal product sector drives this growth with a projected $30.0 billion increase (+11.2%) to $298.6 billion, more than offsetting the $6.1 billion decline (-2.5%) in crop receipts to $236.6 billion. This sectoral split reflects fundamental market dynamics where livestock producers benefit from relatively strong demand, favorable feed cost ratios, and tight supplies in some categories, while crop farmers face headwinds from adequate to surplus global supplies, strong competition from South American producers, and price levels that fail to cover rising production costs for many operations.

Breaking down the animal product categories reveals widespread strength across most livestock sectors. Egg receipts show the most dramatic growth with a projected $7.5 billion increase (+35.4%) to $28.5 billion, driven by strong consumer demand, limited supply following avian influenza outbreaks in recent years, and pricing power as the industry rebuilds laying flocks. Hog receipts are forecast to grow $2.6 billion (+9.5%) to $29.9 billion, reflecting recovery in the pork sector after years of losses, improved export demand, and more favorable margins between feed costs and hog prices. Broiler receipts increase $1.6 billion (+3.5%) to $47.0 billion, continuing the steady expansion of poultry production supported by strong domestic consumption and competitive advantages in global markets. Milk represents the only major animal product category declining, with receipts forecast down $500 million (-1%) to $50.2 billion, as production efficiency gains and slower demand growth pressure dairy prices despite relatively stable production levels.

The extraordinary surge in direct government payments to $40.5 billion, representing a 301% increase from 2024’s $10.1 billion, stems primarily from $35.2 billion in supplemental and ad hoc disaster assistance authorized by the American Relief Act of 2025. These payments address agricultural losses from natural disasters occurring in 2023 and 2024, including droughts, floods, hurricanes, and other weather events that damaged crops, killed livestock, and disrupted farm operations across multiple states. Conservation payments from USDA’s Farm Service Agency and Natural Resources Conservation Service programs are expected to reach $4.8 billion, up $446.3 million (+10.3%) from 2024, reflecting increased enrollment in conservation programs and higher payment rates. Traditional farm bill payments tied to commodity prices total only $550.4 million, largely unchanged from 2024, as market prices for most commodities remain above the levels that would trigger Price Loss Coverage or Agriculture Risk Coverage payments, leaving disaster assistance as the dominant component of government support in 2025.

Farm Labor and Employment in the US 2025

Labor Metric April 2025 January 2025 Change from 2024
Hired Farm Workers (April Week) 637,000 workers 512,000 (January) Up 3%
Hired Farm Workers (January Week) 512,000 workers 497,000 (January 2024) Up 3%
Average Gross Wage Rate $19.52 per hour Variable Up 3% from April 2024
Adverse Effect Wage Rate Range (FY 2025) $14.83 to $22.23 Variable by state Varies by region
Lowest AEWR States $14.83/hour Arkansas, Louisiana, Mississippi N/A
Highest AEWR Locations $22.23/hour (DC), $20.08 (Hawaii), $19.97 (CA) Variable N/A

Data Source: USDA National Agricultural Statistics Service, Farm Labor Report May 2025; USDA Economic Research Service Farm Labor Topic Page

Farm labor statistics for 2025 show modest employment growth accompanied by wage increases that reflect tightening labor markets and regulatory requirements. During the reference week of April 6-12, 2025, there were 637,000 workers hired directly by farm operators across the nation, representing a 3% increase from the corresponding week in April 2024. The January 12-18, 2025 reference week recorded 512,000 hired workers, also up 3% from January 2024, demonstrating consistent year-over-year employment growth despite agriculture’s ongoing mechanization trends that reduce manual labor requirements in many operations. These figures represent only workers hired directly by farmers and ranchers, excluding agricultural service workers employed by contractors, labor suppliers, or other intermediaries who provide services to farms on a fee basis.

Farm worker wages continue their upward trajectory with the average gross wage reaching $19.52 per hour during the April 2025 reference week, representing a 3% increase from April 2024. This wage growth reflects multiple factors including general inflation, competition for workers from other sectors, minimum wage increases in various states, and the regulatory framework governing the H-2A temporary agricultural worker program that establishes minimum wage floors through Adverse Effect Wage Rates. For fiscal year 2025, the AEWR ranges from $14.83 per hour in Arkansas, Louisiana, and Mississippi to $22.23 per hour in the District of Columbia, with Hawaii at $20.08 and California at $19.97, demonstrating substantial regional variation in labor cost structures that affect farm competitiveness and production decisions across different geographic areas.

The agricultural workforce remains characterized by its diversity of worker types and employment arrangements. Field workers engaged in planting, tending, and harvesting crops constitute the largest category, including occupations like agricultural equipment operators, crop farmworkers, graders and sorters, and packers. Livestock workers tend cattle, hogs, poultry, and other animals, performing tasks from milking cows to caring for breeding stock. Supervisors and managers provide oversight and direction, while other workers fill specialized roles including agricultural inspectors, animal breeders, and pesticide applicators. The seasonal nature of much agricultural work creates significant employment fluctuations throughout the year, with peak demand during planting and harvest periods requiring temporary labor that may not be available from local labor markets, driving increased reliance on the H-2A program that brought over 371,000 certified temporary agricultural workers to the United States in 2022, more than sevenfold growth from the approximately 48,000 positions certified in 2005.

Agricultural Exports and Trade in the US 2025

Trade Metric FY 2025 Forecast FY 2024 Change
Total Agricultural Exports $170.5 billion $170.0 billion +$500 million
Total Agricultural Imports $219.5 billion $206.5 billion +$13.0 billion
Agricultural Trade Balance -$49.5 billion -$31.8 billion -$17.7 billion deficit increase
Grain and Feed Exports $37.7 billion Variable Up $1.2 billion
Corn Exports $13.8 billion $12.4 billion +$1.4 billion
Sorghum Exports $1.0 billion $1.2 billion -$200 million
Livestock/Poultry/Dairy Exports $39.7 billion Variable Increasing
Horticultural Product Imports 49% of total imports Variable Major import category

Data Source: USDA Economic Research Service and Foreign Agricultural Service, Agricultural Trade Outlook September 2025

Agricultural trade performance in fiscal year 2025 presents a challenging picture with total agricultural exports forecast at $170.5 billion, representing only a modest $500 million increase from the $170.0 billion recorded in fiscal year 2024. This near-stagnant export performance occurs despite US agriculture’s traditional strength in global markets, reflecting intense competition from South American producers, particularly in soybeans and corn, as well as slower global economic growth that dampens import demand in key markets. Meanwhile, agricultural imports surge $13.0 billion to reach $219.5 billion, driven by continued strong domestic consumption of products not produced domestically or available only seasonally, resulting in an agricultural trade deficit of $49.5 billion compared to $31.8 billion in the previous fiscal year.

The composition of US agricultural exports in 2025 highlights both strengths and vulnerabilities in the nation’s trade position. Grain and feed exports are forecast at $37.7 billion, up $1.2 billion from the previous year, with corn exports increasing $1.4 billion to $13.8 billion as record domestic production provides ample supplies for international markets despite competitive pricing pressure from Brazil and Argentina. Sorghum exports decline $200 million to $1.0 billion, reflecting reduced Chinese demand and shifting feed grain preferences in key markets. The livestock, poultry, and dairy sector shows strength with exports forecast at $39.7 billion, supported by strong beef demand in Asian markets, continued pork exports despite African swine fever complications, and competitive advantages in poultry products. On the import side, horticultural products account for approximately 49% of total agricultural imports, dominated by fresh fruits and vegetables, wine, and processed products that either cannot be grown domestically year-round or meet consumer demand for variety beyond domestic production capacity, illustrating how American consumers increasingly expect diverse, year-round access to fresh produce regardless of seasonal growing limitations.

Farm Production Expenses in the US 2025

Expense Category 2025 Forecast 2024 Estimate Change
Total Production Expenses $467.5 billion $455.5 billion +$11.9 billion (+2.6%)
Feed Purchased $84.4 billion $80.5 billion +$3.9 billion (+4.8%)
Livestock/Poultry Purchased $87.8 billion $73.0 billion +$14.8 billion (+20.2%)
Seed Purchased $23.7 billion $24.7 billion -$1.0 billion (-4.0%)
Fertilizer/Lime/Soil Conditioners $32.7 billion $33.7 billion -$1.0 billion (-3.0%)
Fuels and Oils $16.0 billion $17.0 billion -$1.0 billion (-5.9%)
Pesticides $14.4 billion $15.7 billion -$1.3 billion (-8.3%)
Labor Expenses $35.6 billion $35.0 billion +$600 million (+1.7%)
Interest Expenses $31.9 billion $29.7 billion +$2.2 billion (+7.4%)
Property Taxes $11.3 billion $11.1 billion +$200 million (+1.8%)

Data Source: USDA Economic Research Service, Farm Income and Wealth Statistics, September 2025

Farm production expenses for 2025 are forecast to reach $467.5 billion, representing a $11.9 billion increase (+2.6%) from 2024’s $455.5 billion, with the cost structure shifting significantly across input categories. The most dramatic change comes in livestock and poultry purchases, which surge $14.8 billion (+20.2%) to $87.8 billion, driven primarily by record-high cattle prices as producers pay premium rates to acquire feeder cattle and replacement breeding stock in a tight supply environment. This represents the single largest component of expense increases and reflects the cattle cycle dynamics where strong beef demand and limited available cattle drive prices to historic levels, squeezing margins for cattle feeders and creating financial pressure throughout the beef supply chain.

Feed costs increase $3.9 billion (+4.8%) to $84.4 billion despite relatively stable grain prices, as livestock and poultry producers feed more animals and higher feed conversion requirements in some sectors drive volume increases that offset per-unit price moderation. Conversely, several major input categories show declining costs that partially offset the livestock purchase surge. Fertilizer, lime, and soil conditioner expenses decrease $1.0 billion (-3.0%) to $32.7 billion as global fertilizer markets ease from their 2022 peaks, though prices remain elevated compared to pre-pandemic levels. Seed costs fall $1.0 billion (-4.0%) to $23.7 billion, fuels and oils decline $1.0 billion (-5.9%) to $16.0 billion, and pesticide expenses drop $1.3 billion (-8.3%) to $14.4 billion, providing some cost relief for crop producers even as they face reduced commodity prices that squeeze profitability from both revenue and expense sides.

Interest expenses represent a growing concern, increasing $2.2 billion (+7.4%) to $31.9 billion as higher interest rates implemented by the Federal Reserve to combat inflation flow through to farm operating loans, equipment financing, and real estate debt. This sharp increase in borrowing costs affects farm financial health across all sectors, particularly for younger producers with higher debt loads and operations that rely heavily on borrowed capital to finance annual production cycles. Labor expenses grow modestly by $600 million (+1.7%) to $35.6 billion, reflecting wage increases and slightly higher employment levels, while property taxes edge up $200 million (+1.8%) to $11.3 billion as agricultural real estate values remain elevated despite financial pressures facing the sector. The overall expense picture shows a 2.6% increase that trails the 40.7% growth in net farm income, but this comparison misleads because the income surge depends almost entirely on extraordinary government disaster payments rather than improved operational profitability, leaving the underlying financial situation more precarious than headline numbers suggest.

Farm Real Estate Values in the US 2025

Real Estate Metric 2024 Value 2023 Value Change
Farm Real Estate Value (per acre) $4,250 $4,130 +$120 (+2.9%)
Cropland Value (per acre) $5,500 $5,370 +$130 (+2.4%)
Pasture Value (per acre) $1,890 $1,830 +$60 (+3.3%)
Total Farm Real Estate Value $3.72 trillion $3.63 trillion +$90 billion (+2.5%)
Farm Real Estate Debt $372 billion $362 billion +$10 billion (+2.8%)
Real Estate Debt-to-Asset Ratio 10.0% 10.0% Stable
Regional Variation Wide range by state Variable Corn Belt highest values

Data Source: USDA Economic Research Service, Farm Sector Balance Sheet, September 2025; USDA National Agricultural Statistics Service Land Values Summary

Farm real estate values in 2024 continued their upward trajectory with the average value of farm real estate (land and buildings) increasing 2.9% to $4,250 per acre from $4,130 per acre in 2023, extending a multi-year trend of appreciation despite challenging farm income conditions. Cropland values specifically rose 2.4% to $5,500 per acre, while pasture land appreciated 3.3% to $1,890 per acre, demonstrating that land values respond to factors beyond current farm profitability including investor demand, development pressure, recreational uses, and expectations about long-term agricultural returns. The total value of farm real estate assets reached approximately $3.72 trillion in 2024, up $90 billion from $3.63 trillion the previous year, representing by far the largest component of agricultural sector wealth and serving as the primary source of equity for farm operators.

The appreciation in farmland values occurs unevenly across regions, with the Corn Belt states commanding the highest per-acre prices due to superior soil productivity, established infrastructure, and consistent crop yields that support premium valuations. Illinois, Iowa, Indiana, and Nebraska regularly report average cropland values exceeding $7,000 to $10,000 per acre or more for prime agricultural land, while less productive regions in the Great Plains, Southeast, and Mountain states see substantially lower per-acre valuations reflecting differences in rainfall, soil quality, topography, and alternative land uses. These sustained increases in land values create both opportunities and challenges for American agriculture in 2025. Existing landowners benefit from increased wealth and borrowing capacity, using appreciated land as collateral for operating loans or retirement security, but beginning farmers and those seeking to expand face formidable barriers to entry as land costs require substantial capital that cannot be justified by farming income alone. The debt-to-asset ratio for farm real estate remained stable at 10.0%, indicating that while farm real estate debt increased $10 billion to $372 billion, the appreciation in underlying asset values kept pace, maintaining relatively conservative leverage ratios that provide financial stability even as aggregate debt levels rise to record highs in nominal terms.

Organic Farming in the US 2025

Organic Farming Metric Latest Data Previous Period Trend
Certified Organic Farms 18,000+ operations 17,500 (2021) Growing steadily
Organic Farmland 5.5+ million acres 5.0 million acres Increasing
Organic Cropland 3.2 million acres 3.0 million acres Up modestly
Organic Pasture/Rangeland 2.3 million acres 2.0 million acres Expanding
Organic Sales Value $11+ billion $10.5 billion Growing 5-7% annually
Organic as % of Total Ag Approximately 1% Under 1% Slow growth
Leading Organic States California, Wisconsin, New York Same leaders Concentrated production

Data Source: USDA National Agricultural Statistics Service, Agricultural Marketing Service National Organic Program

Organic farming continues its gradual expansion in 2025, with the number of certified organic operations surpassing 18,000 farms and organic farmland exceeding 5.5 million acres, though organic production still represents only about 1% of total US agricultural output by acreage and value. The organic sector grows at roughly 5-7% annually in terms of sales value, reaching approximately $11 billion or more in 2025, driven by sustained consumer demand for organic products despite premium prices that typically run 20-100% higher than conventional alternatives. California dominates organic production with the largest number of certified operations and highest sales values, particularly in fruits, vegetables, and nuts, while Wisconsin leads in organic dairy production and New York, Pennsylvania, and Washington contribute significantly to the national organic supply.

The certified organic acreage breaks down into approximately 3.2 million acres of cropland producing organic grains, oilseeds, vegetables, fruits, and other crops, and about 2.3 million acres of pasture and rangeland supporting organic livestock production. Despite steady growth, organic farming faces persistent challenges that limit more rapid expansion including the three-year transition period required for land to achieve organic certification during which farmers must follow organic practices without receiving organic price premiums, limited availability of organic seeds and inputs, higher production costs and often lower yields compared to conventional farming, complex recordkeeping and certification requirements, and supply chain constraints that make it difficult to aggregate, process, and market organic products efficiently. Consumer demand remains the primary driver, with organic food sales in retail channels continuing to grow as health-conscious consumers, environmental concerns, and food safety perceptions motivate purchase decisions, though organic products still represent less than 6% of total US food sales, indicating substantial room for market expansion if production capacity and distribution systems can scale to meet latent demand while maintaining price points that consumers find acceptable.

Precision Agriculture and Technology Adoption in the US 2025

Technology/Practice Adoption Rate Farm Size Correlation Trend
GPS/Guidance Systems 75-80% Higher on larger farms Widespread adoption
Yield Monitors 60-65% Common on grain farms Standard technology
Variable Rate Technology 40-45% Increasing steadily Growing adoption
Precision Soil Sampling 35-40% More common on larger operations Expanding use
Drones/UAV Imagery 25-30% Early majority adoption Rapid growth
Automated Steering 70%+ Very high on large farms Near universal on new equipment
Farm Management Software 55-60% Higher on commercial farms Steady increase
Precision Livestock Farming 15-20% Growing in dairy/confined operations Early stage

Data Source: USDA Economic Research Service, Agricultural Resource Management Survey; Various industry adoption surveys

Precision agriculture technologies achieve mainstream status in 2025 with GPS guidance systems and automated steering reaching adoption rates of 75-80% or higher on crop farms, fundamentally transforming how American farmers manage their operations. These technologies, which seemed cutting-edge just 15-20 years ago, now come as standard equipment on new tractors, combines, and planters, with even smaller operations incorporating at least basic guidance systems to improve efficiency, reduce overlap, and enable more precise input application. Yield monitors appear on 60-65% of grain farms, providing real-time harvest data that informs future management decisions, while variable rate technology for fertilizer, seed, and pesticide application reaches 40-45% adoption as producers leverage increasingly sophisticated data analysis to optimize inputs based on within-field variability.

The adoption patterns reveal clear correlations with farm size, commodity type, and operator age, with larger commercial operations leading technology implementation while smaller farms and older operators lag in adoption rates. Drones and UAV-based crop imaging systems reach 25-30% adoption, moving from early adopter status into early majority territory as costs decline and user-friendly software makes aerial imagery actionable for producers without extensive technical expertise. Farm management software appears on 55-60% of farms, helping operators track inputs, analyze costs, manage inventories, and make data-driven decisions that improve profitability in increasingly thin-margin agriculture. The livestock sector shows lower overall technology adoption rates with precision livestock farming technologies like automated milking systems, individual animal monitoring, and feeding automation reaching only 15-20% of operations, though adoption concentrates heavily in larger dairies and confined feeding operations where the economics of these expensive systems pencil out more favorably.

The trajectory toward increased technology adoption seems certain to continue in 2025 and beyond, driven by multiple factors including labor shortages that make automation attractive, environmental regulations that require precise documentation of input usage, margin pressure that rewards efficiency gains, generational turnover as younger, more tech-savvy operators take over farms, and continuing improvements in equipment capabilities, data analytics, and artificial intelligence applications that make precision agriculture more accessible and valuable. However, significant barriers remain including high upfront costs that strain farm cash flows, unreliable rural broadband that limits real-time data transfer and cloud-based applications, complexity that requires new skills and training, data privacy concerns about who owns and can access farm production information, and uncertainty about return on investment for technologies that promise efficiency gains but don’t always deliver sufficient economic benefits to justify their costs in every farming situation.

Climate and Weather Impacts on US Farming 2025

Climate Factor 2025 Status Impact on Farming Geographic Pattern
Drought Conditions Improving overall Reduced stress vs 2022-2023 Localized in Western states
Precipitation Patterns Variable by region Above average in Corn Belt Below average in parts of Plains
Growing Season Temperatures Near to above normal Generally favorable for crops Heat stress periods vary
Extreme Weather Events Multiple incidents Hurricanes, flooding, severe storms Southeast, Gulf Coast, Midwest
Soil Moisture Adequate to surplus Supports strong crop development Best in Eastern Corn Belt
Irrigation Water Availability Stressed in some regions Restrictions in parts of West Ogallala Aquifer decline continues

Data Source: NOAA National Weather Service, US Drought Monitor, USDA weekly crop condition reports 2025

Weather and climate conditions in 2025 proved generally favorable for US agriculture compared to the severe drought and heat stress experienced in 2022 and 2023, though significant regional variations and periodic extreme weather events continued to challenge producers. The Corn Belt states of Iowa, Illinois, Indiana, and Nebraska benefited from above-average precipitation during critical growing periods, supporting the record corn yields and strong soybean production forecast for the year. As of early August, 73% of corn and 66% of soybeans rated in good to excellent condition, substantial improvements over the previous year when drought stress reduced crop ratings and ultimately limited yields. This moisture availability, combined with favorable temperatures that avoided extended extreme heat during pollination and grain fill periods, created near-ideal growing conditions that enabled the crop to achieve its genetic potential in many areas.

However, the 2025 growing season was not without challenges. Several regions experienced extreme weather events including late spring flooding in parts of the Upper Midwest that delayed planting and drowned out some fields, severe storms and tornadoes across the Great Plains and Southeast that damaged crops and farm infrastructure, and a major hurricane that struck the Gulf Coast in late summer, affecting cotton, rice, and sugarcane production in Louisiana, Texas, and neighboring states. The Western United States continued to grapple with longer-term water availability issues as drought conditions, though improved from recent years, persist in portions of California, Nevada, Arizona, and New Mexico, limiting irrigation supplies and forcing farmers to make difficult decisions about which crops to plant, how much acreage to irrigate, and whether to fallow fields entirely. The Ogallala Aquifer, which supports irrigation across eight Great Plains states from South Dakota to Texas, continues its long-term decline as withdrawal rates exceed natural recharge, raising questions about the sustainability of irrigated agriculture in regions that have become major crop production areas over the past 50-70 years.

The $35.2 billion in disaster assistance payments included in the 2025 government support reflects the cumulative impact of weather events from 2023 and 2024, including drought-related losses, freeze damage, hurricane destruction, and flooding that destroyed crops, killed livestock, and damaged farm infrastructure across multiple states. These payments, while providing critical financial relief to affected producers, underscore agriculture’s fundamental vulnerability to weather variability and the growing challenges posed by climate change as extreme events become more frequent and intense. Looking ahead, farmers increasingly focus on climate adaptation strategies including drought-resistant crop varieties, improved irrigation efficiency, cover cropping and soil health practices that enhance water retention, crop insurance products that manage weather risk, and diversification to spread risk across multiple commodities and production systems, recognizing that weather volatility represents a permanent feature of modern agriculture rather than a temporary challenge to be weathered and forgotten.

Disclaimer: This research report is compiled from publicly available sources. While reasonable efforts have been made to ensure accuracy, no representation or warranty, express or implied, is given as to the completeness or reliability of the information. We accept no liability for any errors, omissions, losses, or damages of any kind arising from the use of this report.