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Farm losses mount amid trade pressures, global competition and low snowpack

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A couple of days ago, American Farm Bureau President Zippy Duvall told members, attending the Farm Bureau Annual meeting in Anaheim, California, that U.S. farm losses are running into the tens of billions of dollars, while Congress is still unable to pass a new farm bill. He contended that the Trump administration's $12 billion in ad-hoc aid is not enough, while pointing out that more support is needed to cover the losses farmers have endured because of Trump’s trade wars. He also called on Congress to expand trade and provide labor reforms that would keep farm families afloat.

Last year, Brazil surpassed the U.S. as the world’s top beef producer, according to market estimates. U.S. government trade data indicates that Brazil shipped beef worth almost $17 billion in 2025. Although Brazil was already the largest beef exporter in the world, their beef exports eased a global supply squeeze in 2025, while helping to limit a surge in retail beef prices. Last year, Brazil’s output surpassed U.S. production for the first time, while U.S. production fell almost 4% to 11.8 million tons, due to an extended drought in much of the central U.S. So the higher beef prices that consumers are now paying are helping U.S. beef producers to recover from several years of red ink.

Dr. David Kohl, Professor Emeritus of Agricultural Finance and Small Business Management at Virginia Tech points out that 2026 is special, because it marks the kickoff of the second quarter of the 21st century, and although the U.S. celebrates its 250th birthday, our country is still young when compared to other countries around the globe.” He suggests that farmers should develop marketing and risk management plans, while prioritizing time to take care of themselves physically, mentally and spiritually.

According to the Creighton University Rural MainStreet index, half of the bank CEOs who responded to their monthly survey, identified the reduction of tariffs and trade restrictions as the most effective policy change that is needed to boost farm income. The survey also found that for the 28th straight month, the farm equipment sales index had slumped, agricultural trade had declined, and agricultural exports to China had fallen by almost 88%.

While the weather so far this winter has been favorable for outdoor work and recreation, Drought Monitor reports indicate that the Four Corners Region ranges from abnormally dry in southwest Colorado and southeast Utah to moderate drought in Northeast Arizona and northwest New Mexico. Also, the recent SNOTEL Snowpack Update Reports for the Region are indicating troubling statistics that may affect the Region and beyond into the summer irrigation season, if snowfall doesn't improve over the next couple of months. For example, the snowpack in the Chuska mountains, that range across northeastern Arizona and northwest New Mexico is about 17% of normal, while the San Miguel, Dolores and San Juan River basins have 58% of normal snowpack. The lower basin states of Arizona, California and Nevada are looking at an upper Colorado River basin snowpack that stands at 60% of normal. Although there is still plenty of time for increased snowfall this winter and early spring, these snowpack deficits are troubling, especially for farmers and cities that depend on water from the San Juan, Rio Grande, and Colorado rivers. So let it snow, let it snow!

Author and Farmer Joel Salatin wrote, "We've got this cultural mentality that you've got to be an idiot to be a farmer."

Bob has been an agricultural educator and farm and ranch management consultant for over 40 years in southwest Colorado. He writes about agricultural issues from his farm near Cortez, and has helped to produce farm reports on KSJD for more than a dozen years.
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