Farmers Face Financial Crisis, Federal Aid ‘Small Band-Aid’
On Erica and Eric Sawatzke’s farm in Minnesota, farming statistics have grown unforgivingly. Even with strong yields, the numbers often don’t add up. The new round of federal aid announced in late 2025, while welcome, underscores how wide the gap has grown between the cost of producing crops and what farmers get for selling them. To help them make better financial plans, they turn to expert advice, online tools and loan programs.
The Sawatzkes raise turkeys, corn and soybeans on 500 acres of land that has been in Erica’s family since 1866. Erica is a sixth-generation farmer who returned home after working in agricultural advocacy, determined to keep the profession alive. Her husband, Eric, a full-time high school agriculture teacher who farms next to her, says: “I don’t think I’ll be able to leave the classroom completely, we need health insurance, and we need a steady income to help support the farm operations.”
They sought advice from Deron Erickson, a coach and farm business management consultant who also grows corn and soybeans. “Probably 75% of my (clients) have income to help support the farm,” he said.
Erickson, who is also president of the National Farm and Ranch Business Management Education Association, encourages farmers to start with annual financial reviews conducted with outside experts and use measurement tools to identify risks early.
Helpful tools they recommend include the USDA’s farmers.gov website. It is the first place for information on loans, disaster assistance and federal payments, and the Farm Service Agency, which manages the operation, ownership and emergency loan programs. Its website has a search tool that helps farmers find a USDA service center within their state and county where farmers can learn more about loan programs based on funds appropriated by Congress through the Farm Bill or ad hoc programs.
‘Stopgap, Not A Solution’
In December, the US Department of Agriculture made $12 billion available in one-time bridge payments to offset losses related to trade disruptions and rising costs.
The Sawatzkes are right, but the numbers show why many farmers view the payments as a stopgap, not a solution. The USDA predicted that total farm production costs in 2025 will be $467 billion, and farmers are expected to lose $34 billion. Last year, the Sawatzkes estimated that their farm’s soybean income fell about $75 to $85 per acre below production costs. Under the bridge plan, soybean farmers like the Sawatzkes would receive $30.88 per acre.
“It helps,” Eric Sawatzke said. “But it’s the little bandage that’s missing the most.” In addition to the decline in international trade and having “a lot of grain,” he says the purchase of equipment and repairs is increasing.
“The cost of fixing the parts on the head of corn is higher than the price of the whole thing,” he said of their old combination. “Access to affordable parts and supplies can do a lot more than pay off a one-time bridge in the long run.”
Farmers Rely More on Credit
Nationally, farmers are increasingly relying on debt to manage costs, including parts, labor, rent, fertilizers, chemicals, seeds and taxes.
According to the American Bankers Association, U.S. banks and farm lenders hold nearly $205 billion in farm loans by 2024, which is about 38% of farm loans nationwide.
American Farm Bureau Federation President Zippy Duvall, a Georgia-based beef and chicken farmer, says that while government aid and loans help stabilize operations, they don’t eliminate structural challenges. His organization has experience in finance, grants and scholarships.
According to Bailey Corwine, Farm Bureau communications manager, financial difficulties often overlap with mental health challenges and she recommends that farmers seek support through the Farm State of Mind resource.
Resources for Struggling Farmers
The National Farmers Union also offers business planning and financial education resources, such as a farm business toolbox that helps farmers assess the health of their business. It also has a free 10-week training program for beginning farmers.
That section of the website has a directory that connects farmers to counseling and peer support services across the country. Without such help, Erickson says, it’s easy for depression to creep in.
“If you’re sitting alone at the kitchen table looking at red ink, you can quickly get confused.”
At the Sawatzke farm, they don’t give up because the mission is about preserving the legacy and serving America.
“We grow food to feed people,” said Erica Sawatzke. “That responsibility and pride is why we keep going.”
This article first appeared in USA TODAY: Farmers face financial problems, government aid ‘small band-aid’
Reporting by Sheree R. Curry / USA TODAY
USA TODAY Network via Reuters Connect
