LUBBOCK, TX – Crop producers are facing a farm downturn driven less by collapsing prices and more by the squeeze between weaker commodity markets and stubbornly high costs. A 2026 Southern Extension Committee update says many operations are cutting expenses, restructuring debt, and seeking additional income.
The report says crop farms are under the most pressure, while many livestock operations are in better shape because of strong cattle prices. It compares current conditions with the 1980s and the 2014-2019 downturn.
The main problem today is elevated production costs. Fertilizer, chemicals, fuel, labor, machinery, repairs, land rents, and interest rates have kept breakevens high as crop prices hover near the cost of production.
The report says producers cannot control global prices, so management must focus on costs, efficiency, and liquidity. It warns that trying to outproduce low prices can increase risk.
Short-term strategies include understanding production costs, scrutinizing high-cost inputs, managing machinery and land carefully, and working with lenders early.
Farm-Level Takeaway: Producers should focus on cost control, cash flow, and lender communication before short-term losses become long-term debt problems.