The latest Farm Journal Ag Economists’ Monthly Monitor reveals growing concerns over the U.S. farm economy. Of the 70 leading agricultural economists surveyed, 56% report agriculture is currently in a recession. This is up from 53% in October. A majority, 81%, believe it is on the brink of one. This is a sharp rise from 56% last month.

Row crop farmers face severe financial strain due to high input costs, elevated interest rates and low commodity prices. Forecasts for 2025 indicate continued negative margins. Economists highlight ongoing declines in farm income since 2022, with row crops particularly hard-hit. Resilience in the livestock sector helped offset sentiment on the row crop results.

Key concerns include falling machinery values, debt management challenges and diminishing liquidity. Some believe land values, which remain steady, could eventually decline.

While most agree the sector is in decline, a few economists argue strong land prices indicate the situation is not yet a full recession.

Read more results from the Farm Journal Ag Economists’ Monthly Monitor here.