Ag News
Fletcher: Farmers' costs and revenues don't match up
Posted on Sep 02, 2026 at 14:06 PM
Dr. Stanley Fletcher did not sugar coat the economic landscape Georgia farmers are experiencing. Fletcher, a professor of policy at Abraham Baldwin Agricultural College and long-time economist specializing in peanuts, has surveyed a handful of representative Georgia farms for the past 25 years, collecting information about their financial operations and incorporating it into farm economic analysis. He presented information at the first meeting of the Joint Committee on the Generational Sustainability of Family Farms, held Aug. 20 at the Georgia National Fairgrounds & Agricenter in Perry.
Fletcher led off a slate of speakers that included Marshall Thomas from F&W Forestry, leaders from ag equipment manufacturers (John Deere, AGCO, CNH Industrial, Kubota and Associated Equipment Distributors) and Georgia Farm Service Agency (FSA) Executive Director Duncan Johnson.
Georgia National Fairgrounds & Agricenter Executive Director Stephen Shimp and Sunbelt Ag Expo Executive Director also spoke briefly, inviting the public to attend their events, which take place in October.
Fletcher reviewed his findings for the Georgia representative farms, primarily focusing on peanuts, cotton and corn. According to his studies, peanut expenditures – what he called cash flow cost – have increased by 60% since 2013. In that same time, prices farmers received for their crops have decreased by 3.6%. From 2021 to 2026, expenses increased 21% and prices decreased by 1.2%
“They don’t match up at all,” Flecther said.
A similar situation has played out for cotton. Fletcher’s survey revealed cotton cash flow cost has increased by 53% from 2013 to 2026 while prices have decreased by 3.7% in that time. From 2021 to 2026, expenses have increased by 31% while prices have decreased by 17.9%.
“I could not calculate anywhere that they could make money on the cotton where it’s just strictly that enterprise,” Fletcher said. “They’re losing their shirt. It’s been going on for a while.”
Corn producers saw expenses rise by 43% from 2013 to 2026 with a modest price increase – 0.9% – during that period. From 2021 to 2026, expenses increased by 23% while prices fell by 25%.
Thomas, who is president of F&W Forestry, said the state should beware of unintended consequences when shaping forest policy. He compared forestry management practices in the Southeast, where prescribed burns and markets for timber support sustained forest health, with those employed in western states, where a hands-off approach led to increased naturally occurring fire fuel on forest floors and contributed to widespread, devastating wildfires in recent years.
“Stand health is a by-product of timber sale,” Thomas said. “The key thing is that forest management is funded by the market.”
With losses of wood processing mills – there have been multiple sawmill closures in Georgia in just the past year – the forests will have to be managed by government appropriation, Thomas said, emphasizing that the best government programs for forestry would be ones that facilitate forests being profitable.
Duncan Johnson gave an update on FSA programs, particularly disaster assistance programs for Hurricane Helene losses. He noted that the agency received more than 5,500 applications for the Emergency Conservation Program (ECP) and as of Aug. 20 had fewer than 350 left to process. More than $255 million in ECP funds have been paid out in 2025 and 2026 for Hurricane Helene claims.
The agency received almost 10,000 applications for aid under the Emergency Forest Restoration Program (EFRP) and have about 4,500 left to address, with more than $223 million in EFRP funds paid out in 2025 and 2026.
“As we all know, if you get a farmer the money, they’re just a ‘pass-through,’” Johnson said. “So it has moved on. It is circulating in Georgia and is helping.”
Johnson noted updates to the USDA’s acreage reporting system to improve how crop acreage data is shared across USDA. A pilot program utilizing specialized software for this purpose is being used in Tift County, and the new acreage reporting software was rolled out nationwide on Aug. 24.
Johnson also noted:
• Under the Working Families Tax Cut Act (WFTCA), orchardists and nursery growers have expanded opportunities to gain assistance through the Tree Assistance Program (TAP).
• Landowners can increase base acres under the Agricultural Risk Coverage/Price Loss Coverage (ARC/PLC) programs. Producers should contact their local county FSA office for information about their base acres allocation.
• Also under the WFTCA, producers have opportunities to expand their payment limits and/or eligibility. Johnson said farmers should talk to their accountants and update their farm operating plans with an FSA county office by Sept. 15.
• USDA is working to streamline farmers’ experience with the agency under the One Farmer, One File plan, where the farmer’s file follows him or her across all USDA agencies. Johnson said the expectation is that One Farmer, One File will be complete by 2028.
The farm equipment manufacturers panel, with Eric Wareham of Associated Equipment Distributors, Aaren Vancel of John Deere, Patrick Lucado of CNH, Phillip Conner of AGCO and Marcus Dugger of Kubota, discussed options they each offer farmers in terms of repair-related activities – parts, manuals, phone/computer apps and more. These manufacturers, Wareham said, represent about 80% of the ag equipment market in North America.
Notably, Wareham pointed out memorandums of understanding (MOUs) each of these manufacturers agreed to with the American Farm Bureau Federation. The MOUs required the manufacturers to provide self-repair options to farmers and spell out what the companies will make available both to equipment owners and repair shops.
“We think that that’s a solution in place of legislation,” Wareham said, noting that the MOUs are “living documents,” that are reassessed every six months to keep up with changes in technology. The MOUs also established a complaint portal for farmers to use if one of the manufacturers doesn’t meet the standards of the agreement.
“I think we’re a leading example of an industry that supports customer self-repair,” Wareham said.
The Federal Trade Commission announced July 8 that it and five states have secured an important settlement in an antitrust lawsuit against farm equipment manufacturer Deere & Company that will ensure farmers nationwide can repair their own John Deere tractors and farm equipment. Visit https://gfb.ag/ftcrtrsettlement to read more.
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