In recent years, farmers and ranchers have faced mounting economic pressure reminiscent of the 1980s farm crisis. High production costs, unstable markets, and falling crop prices have created a climate in which many farms are struggling to survive.  

Much of today’s crisis stems from factors beyond farmers’ control: global markets, trade instability, and rising input costs. Still, farm policy ultimately determines how well farmers can withstand disruptions. For decades, programs have tended to favor large-scale operations, leaving smaller and mid-sized farms especially vulnerable. 

Hoosier Environmental Council has long worked to keep farmers on the land and build systems that support autonomy, resilience, and fair markets. Federal and State policy can still play a critical role in securing a more just and sustainable agricultural economy, one that sustains livelihoods, protects resources, and supports rural communities. 

The Current Farm Economy 

U.S. agriculture is highly diverse, but nearly all farmers face the same pressures: escalating input costs, declining commodity prices, volatile export markets, and uncertainty in federal programs. Fertilizer, pesticide, and seed costs have risen sharply since 2016, while crop prices for major commodities (corn, soybeans, wheat, and cotton) have dropped more than 40–50% since their recent highs. Specialty crop growers face similar challenges, including rising labor costs. 

Market instability is worsened by U.S. reliance on exports. Trade disruptions and tariff changes have pushed major buyers toward alternative suppliers, reducing demand for American commodities. Meanwhile, abrupt USDA contract freezes and shifting federal priorities have undermined farmers’ confidence in government support. 

Consequences for Farmers and Communities 

When the farm economy falters, so do farm families and rural communities. Farmer mental health challenges are escalating, and farm consolidation continues to accelerate as smaller operations close. Between 2017 and 2022, more than 140,000 farms shut down, most under 1,000 acres. New and beginning farmers are especially at-risk during downturns, lacking the capital needed to survive financial shocks. 

Policy Solutions 

A combination of immediate and longer-term reforms is needed to stabilize farms now and strengthen resilience in the future. 

Immediate action should include: 

  • Cash-flow and loan assistance for distressed producers 
  • Revenue-based relief payments accessible to all farm types 
  • Short-term rental contracts to retire marginal land and provide guaranteed income (like the Conservation Reserve Program) 
  • Stronger support for input-reducing conservation practices 
  • Insurance incentives for management practices that build farm resiliency 
  • Investments in reliable domestic markets and regional food purchasing 

Near-term priorities should include: 

  • Expanding land access and financial assistance for beginning farmers 
  • Reforming federal and state food procurement to create fairer markets 
  • Strengthening regional supply chains, processing capacity, and technical assistance 
  • Modernizing the farm safety net to better serve small, beginning, and diversified operations 
  • Expand funding for ag education, workforce development, and technical assistance in rural areas. 
  • Expand Land-Preservation and Transition Incentives 

What Comes Next 

This crisis reflects long-standing structural problems, not just temporary market swings. To keep farmers on the land and build a more resilient agricultural economy, federal and state policy must prioritize financial stability, fair markets, and equitable support for farms of all sizes. With thoughtful, comprehensive reforms, the U.S. and Indiana can chart a more sustainable future for farmers, rural communities, and the land they steward. 

State Policy reform 

Between 2010 and 2022, Indiana lost more than 350,000 acres of productive farmland to development. While some of these conversions have gone to solar projects, the vast majority has been consumed by residential and commercial expansion. This rapid loss raises an urgent question: can Indiana do more to protect its irreplaceable farmland, secure long-term food stability, and strengthen our Hoosier food systems? The answer is yes. To safeguard the state’s agricultural future, HEC will advocate during the 2026 Indiana Legislative Session for the creation of a State Agricultural Land Easement (ALE) program—ensuring that farmland preservation becomes a clear priority for the Indiana General Assembly. Learn more about ALE. 

Follow Hoosier Environmental Council’s 2026 Bill Watch and our social media to get the last information on important legislation that HEC is following and for opportunities to speak up for our state’s air, water, land and quality of life.   


Categories: Sustainable Agriculture