WASHINGTON, DC – Farm purchasing power weakened again in September as the prices producers paid continued rising while overall prices received moved lower, according to USDA’s latest Agricultural Prices report.
The Prices Received Index fell 1.7% from August to 133.2, while the Prices Paid Index increased 0.4% to 160.5. The ratio of prices received to prices paid dropped to 83, down from 85 in August and 87 a year earlier.
Crop prices provided some support, with the crop production index up 15% from September 2025. However, the livestock production index fell 10% from a year earlier as cattle, hog, milk and egg prices weakened.
Producers also faced higher expenses for feed, fuel, fertilizer, machinery and services. USDA says the overall production-cost index stood 6% above last year.
The widening gap between farm revenue and operating costs adds pressure to working capital even where commodity prices have improved.
Farm-Level Takeaway: Improving crop prices are not fully offsetting rising operating costs and weaker livestock returns.