Industry Insights

December update

Current challenges, but optimism grows.

The agricultural economy, except for a few commodities, is facing a downturn. High production costs and lower commodity prices are hurting producers' balance sheets. According to a recent Farmer Mac survey, only 50% of farmers are expected to be profitable in 2024, with row crop producers being the hardest hit. However, producer sentiment about the future is at its highest levels in the past three years. The Purdue/CME Group Ag Economy Barometer shows that this optimism is largely due to the recent elections, with producers expecting more favorable regulations, fewer restrictions, and lower taxes. Optimism for the future is also supported by anticipated federal funds rate cuts in 2025 and stabilizing interest rates for producers.

Industry insights

AgWest Farm Credit’s industry research team covers the state of major agricultural commodities in Alaska, Arizona, California, Idaho, Montana, Oregon and Washington. The market updates are based on various sources, and include boots-on-the-ground insights from AgWest’s own lending, appraisal and crop insurance teams across the West. For industry specific information, news and upcoming events, check out our industry pages below.