Little Rock, Arkansas – Farmers across Arkansas are facing a challenging year in 2025, with net farm income projected to fall by 8% compared to 2024, according to a recent report by the University of Arkansas System Division of Agriculture and the Rural and Farm Finance Policy Analysis Center.
The decline comes as farmers struggle with a combination of plummeting crop prices and adverse weather conditions, including heavy rainfall that has disrupted planting schedules and reduced yields in some areas. Experts say this downward trend is part of a longer-term pattern, not just a one-year setback.
Hunter Biram, an extension economist with the University of Arkansas System Division of Agriculture, painted a sobering picture for Arkansas growers. “We do not account for farmers to be able to pay themselves a wage, so the best-case scenario for a farmer is to volunteer their time to show up and plant the crop and break even.”
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In 2024, the state’s net farm income totaled $3.17 billion. Projections for 2025 indicate a drop to $2.91 billion, reflecting the combination of shrinking revenues and rising financial pressure on farms.
Biram noted that the current decline is part of a continuing trend that began in 2022, as crop prices have steadily fallen by roughly 27% over the past three years. “Since 2022, crop prices have declined right about 27%, so this 8% is not an isolated decline, it’s not like we’ve seen some fluctuations, we’re entering a third straight year of a decline in the state of Arkansas.”
The impact is widespread across the state’s key crops. Rice, soybeans, corn, cotton, wheat, and peanuts have all seen decreases in value, averaging about an 8% drop in year-over-year prices. For many Arkansas farmers, these declines translate into thinner profit margins and growing uncertainty about the future of their operations.
A potential lifeline may come from federal support. The so-called “Big Beautiful Bill,” part of the farm safety net program, is expected to provide relief to struggling farmers nationwide. However, Biram warns that the assistance may not arrive in time to address immediate cash-flow needs. “They won’t receive that cash from a cash inflow perspective until a year from now, and farmers need to go to the bank right now,” he said, highlighting the gap between financial support measures and urgent operational demands.
Despite the challenges, Biram says farmers remain cautiously hopeful. “Farmer are eternal optimists, and they always want things to be better, but right now, there is nothing to be optimist about in terms of where the markets are right now.”
The situation carries broader implications beyond individual farms. Agriculture is the state’s leading industry, representing 8% of Arkansas’ gross domestic product—the highest share of GDP attributed to agriculture among all southern states. The sector’s health directly affects local economies, employment, and rural communities across Arkansas.
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For many families who rely on farming as both livelihood and tradition, the current climate is a stark reminder of the sector’s vulnerability. Between volatile commodity prices and unpredictable weather patterns, farmers are navigating a landscape where risk management has never been more critical.
Economists and policymakers say careful planning, along with strategic financial support, will be essential to help Arkansas farmers weather the downturn. While federal programs like the Big Beautiful Bill may provide relief, experts stress that farmers need immediate resources to cover operational costs, maintain equipment, and secure the next planting season.
As the year progresses, the resilience of Arkansas’ farming community will be tested. With major crops losing value and the prospect of financial assistance still months away, the road ahead is uncertain. Still, the dedication of Arkansas farmers—rooted in years of experience and deep connection to the land—remains steadfast in the face of mounting economic and environmental pressures.
