LUBBOCK, TX – Farmers in the southern U.S. are seeing some relief in production costs, according to new USDA data. Operating costs for crops like corn, cotton, peanuts, and soybeans have declined since peaking in 2022, though they remain above 10-year averages.
Data from the Prairie Gateway, Southern Seaboard, and Mississippi Portal regions show most of the recent savings come from lower fertilizer, fuel, and chemical prices. Cotton production was the one exception. Higher ginning and interest costs in Texas and nearby states offset reductions in other areas.
While this cost relief helped growers in 2023 and 2024, forecasts suggest the trend may not last. USDA’s Economic Research Service projects operating expenses to remain steady in 2025 and rise slightly in 2026.
The data show how producers continue to manage tight margins amid shifting market conditions. National trends closely mirror regional costs, meaning most southern producers will likely face similar expense increases over the next two years.
The USDA publishes these estimates twice a year, giving policymakers and producers a clearer view of farm-level economics across commodity sectors.