Farming has always been a test of resilience, but today’s producers are up against more complexity and uncertainty than ever before. From fluctuating markets and rising input costs to extreme weather and growing trade barriers, the list of challenges just keeps getting longer. Across the United States, farmers face a unique and changing mix of pressures that impact their ability to plan, invest, and stay competitive in a global market.

In January of 2025, we asked over 800 farmers across the USA about their level of concern on a list of 21 challenges that farmers currently face or may face in the future. This report focuses on what American farmers are most concerned about.  For “increasing costs of production”, we dove in deeper to capture the voices of farmers on ways they are managing those costs.

The level of concern varied across topics – ranging from 68% very concerned about increasing costs of production to only 11% who were very concerned about farm management software that is difficult to use.

The chart below shows the top 10 issues that American farmers are most concerned about, expressed as the % of farmers who say they are very concerned.

Increasing costs of production

Across the U.S., rising production costs hitting farmers where it hurts most – their bottom line. Prices are up on just about everything: fertilizer, chemicals, feed, fuel, equipment, and repairs. With margins already squeezed, these added costs make it even tougher to stay profitable and plan for the future.

Concern is high – 93% of farmers said they were concerned about rising production costs – 68% indicating the highest level of concern. Concern was higher among those in the Southwest and Southeast states but slightly lower among those in the Midwest.

For many farmers, financial pressure is forcing tough decisions about investments and long-term sustainability of the operation. We asked the same group of US farmers “On your farm operation, what kinds of things are you doing to help manage the rising costs of production?”

The chart below illustrates ways farmers are managing rising production costs:

Reduce Spending on Inputs – A lot of farmers said they plan to tighten up on input spending, sticking to only what is necessary. This shift could have a ripple effect on crop input manufacturers as farmers look to cut back on herbicide programs, lower application rates, and look for lower cost products.

Verbatim:

• “I only make absolutely necessary purchases, but I don’t skimp on crop inputs. I try to run as streamlined an operation as possible.”
• “I am not spending money on anything I consider optional. Seeding rates are not higher than average. Fertilizer is replacement level only – no build added. Generic herbicides when possible.”

Limit Equipment Expenses – A major expense on farm operations in equipment and repairs. Many farmers plan to control these expenses by repairing and maintaining current equipment, buying used equipment, and avoiding the purchase of new equipment. Equipment manufacturers and dealers can expect to see lower sales of new equipment.

Verbatim:

• “Not upgrading equipment but running old one more year.”
• “Decided not to trade any equipment this year but that might mean higher repair bills.”

Shop Around – In an effort to stretch their dollar further, many farmers say they will be comparing prices with more retailers and shopping around to find the best deals. Retailers can expect more pressure on their margins as farmers make price driven decisions and comparisons from retailer to retailer.

Verbatim:

• “Conducting more and more price comparisons and analysis, not sticking with familiar or convenient suppliers.”
• “Trying to watch expenses and looking for the best price for inputs.”
• “Shopping more places to try save a little, I usually try to buy one main place.”
• “Searching farther away for fertilizer and chemicals. Also buying more volume from a company to get a better price.”

Make Careful Decisions – While some intend to cut inputs, others talk about more efficient use of inputs and eliminating wasteful expenses to make them go further. They mention things like scouting for weeds, insects and diseases to monitor populations and making decisions based on conditions. For example, no fungicide applications when crop/weather conditions are not conducive to disease, optimal application timing and using soil tests to limit fertilizer rates.

Verbatim:

• “Better use of inputs like fertilizer and herbicides, variable rate fertilizer application, better field scouting for better herbicide, fungicide or insecticide applications.”
• “Control weeds early, scout often to stay ahead of problems.”
• “Making sure we are using the most efficient rates and populations. putting on only what we take off with the crop as far as fertilizer goes.”
• “Cutting costs by buying just what is needed but not cutting any corners.”

Cut Back on Hired Labor – Reducing hired labor was also commonly mentioned as a way to manage rising costs. Farmers indicate the plan to do more “in-house” when possible – for example scaling back on employee hours and reducing custom work.

Verbatim:

• “Anything to do with reducing labor costs and input cost. Making fewer passes through fields to reduce labor costs, but without reducing yields.”
• “Check book says cut expenses by reducing labor expense on equipment and other around shop duties, we will do them ourselves.”
• “We hire labor only when totally necessary”

Across the board, farmers are tightening up their operations where possible – from inputs to labor and purchasing habits. Rising costs are pushing farmers to be more strategic, resourceful and selective with their expenses and investments. These changes not only reflect the realities that farmers face today but also signal shifting expectations for manufacturers, suppliers and retailers across the ag industry.