U.S. farmers are struggling to stay afloat as the cost to operate keeps rising, and a Politico analysis of new Agriculture Department data shows substantial losses across the sector. The analysis found the U.S. lost nearly 150,000 farms over the last five years and that total farmland area fell by more than 21 million acres. Farm numbers declined roughly three times faster than acreage, a pattern that suggests smaller operations are being consolidated or absorbed into larger farms; that trend was noticeable in 42 states.
Rising input costs have been a central pressure point for farmers. Diesel, fertilizer and other supplies have become more expensive, squeezing margins even as commodity prices for major crops such as corn and soybeans have softened. One Iowa farmer told CBS News that higher diesel and fertilizer prices — in part linked to geopolitical tensions, including the war with Iran — have made farming less attractive for the next generation: “I’d like to see my kids be able to take this on, but we’ve got a generational problem. If our kids see us struggling out here, why would they want to take it on?”
Rachel Shin, a food and agriculture policy reporter for Politico and one of the authors of the analysis, said farmers have faced increased input costs for years, combined recently with lower commodity prices. She also pointed to trade disruptions in 2025 — including tariff policies that affected access to international markets such as China — as a significant blow to the agriculture economy that worsened conditions for many producers.
Smaller and family-run farms are disproportionately affected. Shin and other agriculture officials warn that the exit of small farms can increase market concentration, reduce competition, weaken rural economies and erode cultural and generational knowledge of farming, making it harder for new family farmers to enter the market.
On the consumer side, farmers generally are price takers rather than price makers, so higher production costs do not immediately show up at the grocery checkout. However, if high input costs are prolonged, they can propagate through the supply chain and eventually contribute to higher food prices, though such effects may be delayed and diluted in headline inflation measures.
Shin’s overarching takeaway: many farmers need policy support, and restoring trade access and negotiating more trade deals could help after the disruptions caused by recent tariff policies. She emphasized that, beyond immediate financial relief, trade remains a vital pathway for stabilizing farm incomes and preserving a more diverse and competitive agricultural landscape.