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Food supply

Rural America Faces Financial Pressure as Commodity Prices Decline and Production Costs Remain Elevated

Strategic Insights

— 1 min read

Rural America is under severe financial pressure as the prices of corn and soybeans have plummeted by 40-50% from their recent highs, while production costs remain high. The National Corn Growers Association survey reveals that nearly half of U.S. farmers believe the nation is on the brink of a farm crisis, with 2025 marking the third consecutive year of negative profitability. Industry leaders warn that short-term fixes will not suffice, and instead, new and durable demand markets are required to restore profitability for America's farmers.

Key Takeaways:

  • The prices of corn and soybeans have declined by 40-50% from their recent highs, putting significant financial pressure on rural America.
  • Production costs for farmers remain elevated, exacerbating the financial strain.
  • The National Corn Growers Association survey shows that nearly half of U.S. farmers believe the nation is on the brink of a farm crisis.
  • 2025 marks the third consecutive year of negative profitability for many farmers, threatening food security and the stability of local economies.
  • Industry leaders emphasize the need for new and durable demand markets to restore profitability for farmers.
  • The International Maritime Organization (IMO) is expected to finalize its Net-Zero Framework in October 2025, requiring large ocean-going vessels to cut greenhouse gas emissions starting in 2027.
  • The IMO policy will accelerate demand for biofuels, with potential demand increasing by up to 25 million metric tons by 2030.
  • Biofuels can stabilize rural communities while helping the shipping industry decarbonize.
  • Ben Kruger, senior vice president of Roeslein Renewables, highlights the importance of biofuels as a lifeline for U.S. farmers.

Statistics:

  • The prices of corn and soybeans have declined by 40-50% from recent highs.
  • 40 percent of U.S. farmers believe the nation is on the brink of a farm crisis.
  • 2025 marks the third consecutive year of negative profitability for many farmers.
  • By 2030, biofuel demand for maritime use could grow by up to 25 million metric tons, representing one-third of global demand.
  • The IMO policy will require large ocean-going vessels to cut greenhouse gas emissions starting in 2027.

Sources:

1. National Corn Growers Association survey.

2. International Maritime Organization (IMO) Net-Zero Framework.

3. Biofuels as a renewable fuel made from plant material, animal waste, and agricultural residues.

4. Roeslein Renewables.

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