Recent USDA data show the gap between what farmers pay for inputs and what they earn from selling crops and livestock has reached its widest point in at least ten years, signaling growing financial pressure on farm operations heading into the new season. Production costs — including items like fertilizer, fuel, seed, machinery and labor — have climbed significantly. At the same time, prices received for farm products have softened from previous highs, widening the spread between costs and earnings.

For many producers, this cost-to-income imbalance means tighter margins and heightened concern about profitability, even if yields remain strong. The imbalance reflects broader trends in which input costs are rising faster than commodity prices, squeezing farm budgets and challenging financial planning for the year ahead.

Read the full article to learn how this widening gap could affect your bottom line.