By Jamie Martin
U.S. farmers are experiencing rising financial pressure as production costs continue to increase while market prices for crops and livestock decline.
New USDA data shows that by October 2025, the prices paid index reached 154.6. This index measures the overall cost of farm inputs. During the same period, the prices received index dropped to 120.5, which reflects what farmers earn for their products. Both indexes use 2011 as a base year of 100.
These figures mean that farm production costs are now more than 50 percent higher than they were in 2011. However, income has risen by only about 21 percent. The difference between these two measures is now more than 34 points, creating the widest gap in at least a decade.
Production costs include expenses such as fertilizer, fuel, feed, seed, labor, and machinery. Although some input prices have eased slightly, they remain much higher than in earlier years. At the same time, prices for crops and livestock have dropped from recent highs.
In earlier years, especially during 2021 and 2022, higher commodity prices helped balance rising costs. Since then, falling market prices have caused income to decline faster than expenses, increasing financial pressure on farms.
These indexes do not show profit directly, but they provide a clear sign of the challenges facing producers as they prepare for the next growing season.
USDA develops these indexes using market data and surveys conducted by the National Agricultural Statistics Service. Agribusinesses report prices for farm inputs, while grain buyers, livestock auctions, and packing plants provide information on product prices.
Together, this data helps track changes in farm economics and shows the growing cost challenges affecting U.S. agriculture.
Photo Credit: usda
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