LUBBOCK, TX – The current farm downturn is serious, but economists say it is not a repeat of the 1980s farm crisis. The Southern Extension Committee report says today’s pressure is concentrated more heavily in crop agriculture, while many livestock operations remain stronger.
The 1980s crisis was driven by falling land values, loan defaults, high interest rates, and widespread financial collapse. Today’s downturn is more tied to weaker crop prices and stubbornly high production costs.
The report says producers are facing a cost-price squeeze. Inputs, repairs, wages, machinery, and interest costs remain elevated while crop prices hover near the cost of production.
That does not mean the risk is small. Some farms may still exit, restructure debt, or seek outside income.
Farmers are encouraged to compare current balance sheets, debt levels, and cash flow with realistic market expectations before making expansion decisions.
Farm-Level Takeaway: Producers should take this downturn seriously but manage it as a cost-price squeeze rather than a repeat of the 1980s.