Continued negative returns leading to increase in farm closures, AFBF says

An ag economist says losses in the farm economy are adding up.

“We’ve seen continued pressure against farmers and ranchers, said Faith Parum with the American Farm Bureau Federation.

Faith Parum tells Brownfield many farmers could see a fourth straight year of negative returns in 2026.

“It’s really starting to strain their financials,” she said. “They are using their working capital and are having to take on more and more debt to continue.”

She says it’s led to an increase in farm closures.

“Over 170,000 since 2017, so we’ve seen a large number of farm closures. That is farmers closing their gate for good, which is detrimental for our rural communities. Farmers and ranchers are the lifebloods of those rural communities.”

Parum says the trend is likely to continue moving forward until there’s a large reduction in production expenses.

She spoke to Brownfield at the NAFB’s 2026 Washington Watch.

Faith Parum: