Agricultural Economics, Department of
Cornhusker Economics
Managing Risk in Agriculture
Date of this Version
9-17-2025
Document Type
Newsletter Issue
Citation
Cornhusker Economics (September 17, 2025)
Agricultural Economics, University of Nebraska-Lincoln
Abstract
Farmers and ranchers are managing through an interesting and challenging time in agriculture. National projections suggest a near-record farm income for 2025 (USDA-ERS) yet other reports show increasing levels of concern in agriculture as financial conditions weaken (Kreitman) and farmer sentiment weakens (Langemeier and Mintert).
Part of the seeming contradiction in ag conditions can be explained by the economic outlook for crops versus that for livestock. While cattle producers are enjoying record prices at present amid tight supplies and sustained consumer demand, crop producers have generally faced declining prices and tightening margins every year since 2022 (USDA-WAOB). The added livestock revenue and temporary relief from ad hoc government assistance in 2025 both help with profitability and cash flow for now but also come with questions about how long the current situation will last.