The State of American Farming: What Farmers Need to Know Right Now
- keepourvetshoused
- Jul 27
- 6 min read
July 27, 2026
Farming Doesn't Happen in a Vacuum
When we think about farming, we often think about planting, livestock, equipment, soil, harvests, and the day-to-day work of producing food.
But American agriculture is influenced by much more than what happens in the field.
Trade policy, weather disasters, farm income, interest rates, input costs, government programs, land access, livestock numbers, conservation policy, and even international events can affect whether a farm succeeds or struggles.
That is why the Veterans & Young Farmers Alliance (VYFA) believes farmers and aspiring farmers need more than agricultural skills. They need to understand the environment in which they are operating.
Here are some of the major developments affecting American agriculture right now.
1. Farm Income Remains a Major Concern
The USDA Economic Research Service currently forecasts 2026 net farm income at approximately $153.4 billion, a slight decline from 2025. After adjusting for inflation, USDA projects net farm income to fall approximately 2.6% from the previous year.
That does not mean every farm is struggling.
It does mean farmers need to pay close attention to their numbers.
A farm can produce more and still make less money if the cost of production rises faster than revenue.
For farmers, that means budgeting cannot be an afterthought.
Know your cost per acre.Know your cost per animal.Know your break-even point.Know your debt obligations.Know how much cash you need to survive a bad season.
For new farmers, these aren't just accounting exercises. They can determine whether a lender considers an operation financially viable.
2. Weather Is Continuing to Create Serious Agricultural Risk
Weather remains one of the most immediate threats facing agricultural operations.
In July alone, USDA has announced disaster assistance related to flooding in Missouri and Texas, drought and wildfire conditions in Utah and Colorado, and other weather-related agricultural losses.
For a farmer, a weather disaster can affect much more than a single harvest.
It can damage:
Crops
Pasture
Livestock
Fencing
Buildings
Equipment
Roads and access
Irrigation systems
Stored feed
Farm income
That makes risk management and documentation essential.
Farmers should maintain photographs, production records, receipts, inventories, acreage information, livestock records, insurance information, and other documentation that can help establish the extent of a loss.
USDA's Farm Service Agency and Risk Management Agency have programs that may provide assistance following qualifying disasters, but farmers generally need to meet specific eligibility and documentation requirements.
Do not wait until after a disaster to learn what your programs require.
3. USDA Assistance and Deadlines Matter
One of the most important agricultural stories this week isn't necessarily something farmers will see on the evening news.
It is the approaching deadline for several USDA programs.
USDA's Farm Service Agency issued a reminder on July 27 that deadlines are approaching for programs including the Assistance for Specialty Crop Farmers (ASCF) program and the Supplemental Disaster Relief Program (SDRP). USDA also says eligible landowners have until the end of August to consider potential base-acre increases for the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs.
This is a critical reminder:
Being eligible for assistance is not enough.
Farmers have to know:
What programs exist.Who qualifies.What documentation is required.When applications open.When applications close.What records must be maintained.
This is one reason VYFA emphasizes agricultural education, documentation, and professional readiness.
A farmer should not discover an important USDA program after the deadline has passed.
4. Trade Policy Could Affect the Farm Gate
Agriculture is deeply connected to international markets.
The United States exports enormous amounts of agricultural products, which means changes in international trade policy can affect American producers.
This month, the United States imposed a 25% tariff on certain goods from Brazil, following a U.S. Trade Representative investigation. The action specifically addressed issues that the U.S. government says have affected American farmers, workers, businesses, and exporters.
The United States also announced new tariffs affecting goods from dozens of economies on July 24.
The agricultural impact of trade policy can be complicated.
Tariffs can potentially protect domestic industries or create leverage in trade negotiations.
But agriculture also depends heavily on exports and imported inputs.
That means farmers have to watch both sides of the equation:
What are we selling?
and
What does it cost to produce it?
Changes in trade policy can influence commodity markets, export demand, equipment costs, fertilizer costs, supply chains, and ultimately farm profitability.
5. American Crop Choices Are Changing
USDA's latest acreage data shows an important shift in the nation's major row crops.
For 2026, farmers reported planting 3% fewer acres of corn and 5% more acres of soybeans compared with 2025.
That may sound like a simple statistic.
It isn't.
Crop acreage decisions can reflect expectations about:
Commodity prices
Input costs
Weather
Export markets
Government programs
Crop insurance
Soil conditions
Rotation strategies
Expected profitability
Every acre represents a financial decision.
And when millions of farmers make those decisions simultaneously, those choices can influence national supply, commodity prices, storage requirements, transportation, livestock feed costs, and agricultural markets.
6. Livestock Producers Are Watching Herd Numbers
USDA's July 24 cattle inventory report found that the United States cattle inventory was up slightly.
Livestock numbers matter because the size of the national herd can influence cattle supply, feed demand, beef production, prices, pasture demand, and eventually consumer prices.
For livestock producers, this reinforces the importance of understanding markets rather than operating solely on production assumptions.
A successful livestock operation has to understand both:
the animal and the market.
What Does All of This Mean for New and Young Farmers?
This is where VYFA believes the conversation needs to change.
The future farmer cannot simply ask:
"How do I grow something?"
The better questions are:
Can I produce it profitably?
Can I survive a bad year?
Do I understand my market?
Do I have adequate insurance and risk protection?
Do I have the records a lender or USDA program may require?
Do I understand my legal and regulatory responsibilities?
Do I have a plan for unexpected costs?
Do I have more than one potential revenue stream?
Those questions are not meant to discourage new farmers.
They are meant to prepare them.
Farming Is a Business — and That Matters
VYFA believes that agricultural education should include both hands-on farming knowledge and business readiness.
A farmer needs to understand soil and livestock.
But a farmer also needs to understand:
Budgets
Cash flow
Credit
Debt
Insurance
Taxes
Recordkeeping
Compliance
Contracts
Marketing
Risk management
Government programs
Financing
Emergency planning
The strongest farms are not necessarily the farms that never experience problems.
They are often the farms that have prepared for problems before they happen.
What Farmers Should Be Watching
As we move through the second half of 2026, VYFA encourages farmers and aspiring farmers to keep an eye on several areas:
🌾 Commodity Markets
Watch prices for the crops and livestock you depend on.
💰 Input Costs
Fuel, fertilizer, seed, feed, veterinary expenses, repairs, machinery, and other operating costs can quickly change your bottom line.
🌎 Trade Policy
International trade decisions can influence both markets and production costs.
🌧️ Weather & Disaster Risk
Floods, droughts, wildfire, freezes, storms, and other events can change an entire production year.
🏦 Interest Rates & Lending
Financing costs matter when purchasing land, equipment, livestock, buildings, and other assets.
📋 USDA Programs
Keep track of program announcements, eligibility requirements, enrollment periods, and deadlines.
🐄 Livestock Markets
Herd inventories and market conditions can affect producers well beyond the livestock sector.
🚜 Equipment & Technology
Equipment availability, repairability, technology costs, and access to service can directly affect farm productivity.
🏡 Land Access
For beginning farmers especially, land remains one of the largest barriers to entering agriculture.
VYFA's Position: Information Is a Farm Asset
A farmer's tractor is an asset.
So is their livestock.
So is their land.
But knowledge is an asset, too.
Understanding what is happening in agriculture can help farmers make better decisions before a problem reaches their operation.
That is why VYFA intends to continue following agricultural policy, USDA programs, market developments, weather events, rural economic conditions, and other issues affecting farmers.
Our goal isn't to tell farmers what political position they should have.
Our goal is to help farmers understand what is happening, why it matters, and what questions they should be asking about their own operation.
Because informed farmers are better prepared farmers.
And better prepared farmers are better positioned to build farms that survive — and farms that future generations can inherit.
From VYFA
The Veterans & Young Farmers Alliance is committed to helping veterans, young farmers, beginning farmers, and agricultural communities build the knowledge, preparation, and resources necessary to pursue sustainable agricultural careers and businesses.
Serving Those Who Serve the Land.
Veterans & Young Farmers Alliance (VYFA)
Agriculture. Education. Opportunity. The Future of Farming.
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