Farm Journal’s June Ag Economists’ Monthly Monitor, compiled from the responses of 80 farm economists, indicates that the US agricultural economy continues to struggle finding profitability. Ag producers are facing high input costs for fuel, fertilizer and other inputs, while commodity prices remain below break-even amounts. Producers are also dealing with uncertainty caused by weather, trade with China and other countries. Economists point out that producers are depending on direct farm program payments that are expected to amount to over $44 billion to keep them afloat in 2026.
With these statistics in mind, the National Sustainable Agriculture Coalition is reporting that USDA staffing cuts in 2025 have left county-level service offices understaffed. The report found that Iowa lost nearly 19% of its Natural Resources Conservation Service and 8% of its Farm Service Agency staff between January 2025 and January 2026. Staff at both of these USDA agencies help farmers deal with federal programs and loans. The report also states that these agencies were among those “hardest hit” by the Department of Government Efficiency (DOGE) cuts.
2026 could be the worst Colorado wheat season since 1965, because farmers in eastern Colorado, who normally harvest about two million acres of wheat annually, are likely to produce about 50% of the normal crop yield of 71 million bushels. This year, although wheat fields look okay, farmers are finding mostly headless wheat, with very little viable seed. So farmers are saying, “wait until next year,” since these eastern Colorado farmers don’t have viable alternative crops that are suitable for the high plains environment. However, these tough growing conditions are driving up the price of hard red winter wheat for farmers in other parts of the high plains region that have not been hit as hard as farmers in eastern Colorado.
Last week, the US Senate Committee on Agriculture rolled out its draft version of the Farm Bill, and Chair John Boozman indicated that the Committee will move to mark up the draft after the Senate returns in mid-July from recess. Also, Donald Trump a sent a supplemental request to Congress that included $11.1 billion for farm aid, and he also issued an executive order concerning implementation of regenerative agriculture. Since he was on a roll, Trump also requested that Congress approve permanent year-round sales of E15 gasoline, increasing the level of ethanol from 10% to 15%. even in the summer. If Congress approves the full request, farm payments could reach about $55.4 billion this year, which is the highest level of payments since 2001.
Recently, the US. Secretary of Agriculture Brooke Rollins announced initiatives to promote the use of regenerative agriculture in the US. However, a definition of regenerative agriculture isn’t easy to pin down. Generally, the term calls for unconventional farming practices that are centered around improving soil health, sequestering carbon, and increasing biodiversity. Practices include growing cover crops, integrating livestock, or reducing tillage for a variety of intended results that include better air quality, reducing erosion, and increasing community living standards.
Although July 4th is past, a Progressive Farmer Magazine article, Washington: America's Founding Farmer caught my attention, because it pointed out that George Washington was not only our first President, but also an innovative farmer. A link to the article is at the Farm News & Views Blog Post at KSJD.org.
