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Midwest Farm Economies Suffered While some Sun Belt States Kept Rolling in Early 2025

MIDWEST AND SUN BELT STATES, JUL 11 – Midwest farm bankruptcies rose sharply in early 2025 due to high costs and low crop prices while Sun Belt states saw modest agricultural economic growth, USDA data shows.

  • Despite Southern gains, the Midwest’s farm sector faltered, with Nebraska and Iowa experiencing a 6.1% GDP drop, and Arkansas seeing a near-record number of farm bankruptcies, Stateline’s analysis shows.
  • Amid rising input costs, economists said, small farms face bankruptcy worsened by climate-driven transport and fertilizer price spikes, according to Ryan Loy.
  • Data show national farm bankruptcies at record levels, with South Carolina growing 1.7%, Florida 1.4%, Alabama 1%, and North Carolina and Arkansas each 0.8%, according to Stateline’s analysis.
  • Consequently, the USDA reported nearly 54 million Americans live in food deserts, with the Annie E. Casey Foundation finding the South hosts most of these areas.
  • Experts say, Southeastern’s poultry and egg profits outpace Midwest row crops, with divergence expected to last as prices for meat and eggs rise while row-crop prices fall, Sawadgo said.
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Ottumwa CourierOttumwa Courier
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Midwest farm economies suffered while some Sun Belt states kept rolling in early 2025

Global clashes and trade wars hammered Midwestern states’ agricultural economies early this year, while a continuing boom in Southeastern states’ housing and tech jobs kept their economies humming along.

Center

Ohio to Sun Belt?

Ohio to Sun Belt?

·United States
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In the first quarter of 2025 there were almost twice as many bankruptcies as in 2024. High costs and interest rates pressure family farming operations in the U.S. The White House claims that...

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stateline.org broke the news in on Friday, July 11, 2025.
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