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Farm losses mount as drought, fuel costs and land policy shape agriculture

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According to a new American Farm Bureau Federation analysis, farmers growing corn, soybeans and wheat will collectively lose $32 billion in 2027. That’s up from an estimated $31 billion in losses in 2026. But many specialty crop producers who grow fruits and vegetables, tree nuts, dried fruits, and horticulture and nursery crops will continue to struggle with losses that have persisted for several years.

The US. Climate Prediction Center is projecting some improvement in drought conditions over Arizona, along with parts of Utah and Nevada. The Center outlook notes that "During the remainder of July through the end of October, El Nino conditions are favored to have an increasing impact on climate anomalies. Enhanced monsoon moisture driven by warmer Pacific Ocean temperatures favors widespread drought reduction across the Four Corners region and much of the Rockies." But Colorado State University water and climate scientist Brad Udall contends that a reversal of long-term lower water volume in the Colorado Basin is unlikely, since both Lake Powell and Lake Mead are less than 30% full, according to U.S. Bureau of Reclamation assessments in early July.

Foreign ownership of agricultural land is becoming one of the most active issues in agricultural policy, according to Harrison Pittman, director of the National Agricultural Law Center. The Agricultural Foreign Investment Disclosure Act of 1978 is the federal law requiring foreign persons to report certain interests in U.S. agricultural land. Pittman points out that about 46 million acres in the U.S. are held under some form of foreign ownership, which amounts to about 3.6% of private agricultural land, but Pittman points out that state legislation has increased recently, and may have the most immediate effect on land transactions. He points out that 15 states have enacted new laws, and eight amended existing statutes.

A new study by the U.S. Congress Joint Economic Committee found that farmers of major crops in the U.S. spent $1.4 billion more on diesel fuel during the 2025–2026 planting season than they did last season. The study released last week, analyzed corn, soybeans, wheat, cotton, and rice planted by U.S. farmers. The 2025–2026 increase in diesel spending to plant those crops was a 63% jump year-over-year, according to the analysis. The study found that Illinois, Iowa, and Minnesota had the highest increase overall in planting diesel costs.

While U.S. Food and Drug Administration and Centers for Disease Control and Prevention are continuing to investigate the recent Cyclospora outbreak, that has affected several thousand people, the Colorado Department of Agriculture is assuring consumers that eating fresh Colorado produce continues to be a safe part of a nutritious and healthy diet. “So far, no Colorado-grown produce has been linked to the outbreak,” according to Colorado Department of Agriculture’s Produce Safety Manager Duane Sinning. “Colorado growers and produce processors should continue normal operations and fresh produce that has not been implicated in the outbreak should continue to be grown, harvested, processed and sold. Consumers can continue purchasing Colorado-grown fruits and vegetables with confidence, knowing they have not been implicated in the outbreak.” Colorado is most famously known for its Pueblo chili, Olathe sweet corn, and San Luis Valley potatoes.

Will Rogers wrote, “I have a scheme for stopping war. No nation is allowed to enter a war till they have paid for the last one.”

LP McKay is the News Director and Morning Edition Host at KSJD Community Radio in Cortez, Colorado. They bring years of experience in audio production and community-centered reporting, with a focus on rural issues, public lands, tribal affairs, and civic engagement in the Four Corners region. McKay has produced and edited news features, interviews, and podcasts for broadcast and digital platforms, and works closely with regional partners through Rocky Mountain Community Radio to amplify local voices and stories that might otherwise go unheard.
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