By Blake Jackson
Farmers in Southeast and South-Central Missouri continue to face financial challenges as declining commodity prices and rising production expenses pressure agricultural operations.
Recent federal assistance and policy changes aim to provide relief, while efforts to reduce input costs and expand international markets remain important priorities.
According to the announcement, U.S. Agriculture Secretary Brooke Rollins said the U.S. Department of Agriculture (USDA) will distribute approximately $13.8 billion through the Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs for the 2025 crop year.
Missouri producers are expected to receive $493 million, approximately $133 million more than they would have received without the One Big Beautiful Bill Act, which increased reference prices for the first time in two decades.
However, the assistance is not expected to resolve all financial pressures facing farmers. High expenses for fertilizer, fuel, and other essential inputs continue to affect farm profitability.
Fertilizer remains a significant expense, accounting for approximately 36% of corn producers' operating costs, according to the USDA. A University of Missouri study projects that farmers in the state will spend more than $1.5 billion on fertilizer and related soil inputs in 2026, representing an increase of more than 50% since 2020.
Efforts to address fertilizer costs included a congressional delegation's visit to Morocco, a major global phosphate supplier. Following discussions with the administration, suspended tariffs on Moroccan phosphate for eight months in June to help improve supply availability.
Fuel expenses have also increased, with diesel prices reportedly exceeding $6 per gallon during harvest. Missouri Gov. Mike Kehoe signed an executive order on September 30 allowing farmers to use dyed diesel on state highways. The administration subsequently signed a federal executive order deferring the federal excise tax on on-road dyed diesel through the end of 2026, according to the announcement.
Expanding export opportunities is another focus of federal agricultural policy. USDA projections indicate the agricultural trade deficit could decline by nearly $20 billion compared with the previous year, with department officials attributing progress to recently negotiated trade agreements.
Several international developments could benefit U.S. producers. Australia agreed to accept American beef for the first time in two decades, Japan committed to increasing its quota for U.S. rice by 75%, and Taiwan agreed to eliminate tariffs on nearly all American agricultural products under a trade agreement.
Although federal payments and trade initiatives offer potential benefits, farmers continue to face pressure from high input costs and uncertain commodity markets.
Reducing expenses, strengthening agricultural exports and improving farm profitability remain central concerns for producers across Missouri and the broader United States.
Photo Credit: gettyimages-kotenko-a
Categories: Missouri, Government & Policy