The first quarter of 2025 brought a stark economic divide across the U.S.: Midwestern farm economies took a hit, while Sun Belt states continued to thrive.
In the Midwest, row-crop farmers faced mounting pressure from plummeting commodity prices and skyrocketing fertilizer costs. Nebraska and Iowa saw some of the steepest declines in GDP—each dropping 6.1% compared to the previous year. Trade wars and global conflicts disrupted fertilizer supply chains, with sanctions and bombings affecting imports from key suppliers like Russia, Iran, and China.
Meanwhile, the Southeast enjoyed economic momentum, fueled by booming real estate and tech sectors, and a more resilient agricultural base centered on poultry and eggs, which remained profitable. States like Alabama, Arkansas, and Mississippi saw agriculture contribute positively to their growth, even as small row-crop farmers in the region still felt the pinch.
Nationwide, the economic slowdown was widespread: 39 states and D.C. reported GDP declines, a sharp increase from 22 states the year before. Farm bankruptcies surged, with 259 filings in just three months, the highest since 2021.
Comments