By Scout Nelson
Minnesota farmers are entering the 2025 growing season facing major financial challenges following a sharp decline in farm income during 2024. According to new data from the University of Minnesota and Minnesota State, the median net farm income dropped to $21,964 — the lowest figure seen this century.
The decline is largely due to poor crop prices, reduced yields from difficult weather, and rising costs. “We saw not only challenged prices, but also challenged yields given a very wet planting season and then just the challenges that then developed during the year with some drier conditions towards the end of the year,” said Pauline Van Nurden, economist at the University of Minnesota Extension.
Crop producers were hit hardest, with the median income nearly reaching zero. Many lost up to 25% of their working capital and had to use their savings to meet financial obligations. The drop in cash crop prices—down by 20% or more—added pressure on operations, especially for those relying solely on crop production.
Livestock, dairy, and beef operations saw better results in 2024. Lower feed costs and stronger prices helped improve their profitability. Diversified farms performed more strongly than specialized crop farms.
While the USDA forecasts an increase in net cash income for 2025, farmers still face uncertainty due to high interest rates, global tariffs, and inflation. Government relief programs may offer some support.
“There certainly is uncertainty out there… I think farmers are pushing the pencil to their own personal numbers and trying to make the right decisions for their farming operation,” said Van Nurden. She also emphasized cost management, smart planning, and marketing strategies as helpful tools for navigating tough times.
The report reflects data from over 2,300 Minnesota farms participating in farm business management programs.
Photo Credit:gettyimages-eugenesergeev
Categories: Minnesota, Crops, Livestock, Beef Cattle, Dairy Cattle, Weather