MARC JACOBS
Hutch Post
Kansas farmers are facing a mounting crisis as grain prices remain well below the cost of production, driving economic uncertainty and emotional strain across the state’s agricultural communities.
John Jenkinson, a well-known farm broadcaster and ag expert, said Friday on the BW Morning Show that current market conditions are forcing many producers to operate at a loss. “It’s like taking your paycheck from seven years ago and trying to live on it today,” Jenkinson said. “We’re anywhere from 75 cents to a dollar under what it costs to raise a bushel of wheat.”
Jenkinson said, for example. your average input costs are $5 to $5.25 per bushel of wheat, while local elevator prices are hovering around $4.50. With little relief in sight, Jenkinson said producers are depending on higher yields just to offset falling revenues.
Adding to the challenge is a sluggish export market and stiff global competition. A strong U.S. dollar and large harvests in South America, where farming costs are lower, have made American grain less competitive overseas. “The free market works when it works,” Jenkinson said, “but right now it’s not in our favor.”
One bright spot is a recent USDA initiative offering expedited disaster relief payments for losses from drought, floods, and freezes in 2023 and 2024. Stage one of the Supplemental Disaster Relief Program is now underway, and pre-filled applications have already started arriving in farmers’ mailboxes. Jenkinson encouraged farmers to work with their local Farm Service Agency offices to ensure landlords co-sign necessary forms.
LINK: USDA announces expedited disaster assistance for farmers
Still, Jenkinson warned the relief funds—while helpful—are modest and may not be enough to stop a troubling trend: the rising number of farm bankruptcies.
“We’ve already had more bankruptcies this year than all of last year,” he said. “This is heartbreaking. These are families who survived the farm crisis of the 1980s. They’ve held on through tough times, and now they’re losing it all.”
Despite plunging commodity prices, Kansas land values have remained surprisingly steady—thanks, in part, to outside investment. Jenkinson, who also works in banking, noted that some land purchases are being made by wealthy investors, including foreign entities, who are not dependent on crop revenues to justify the investment. That’s helping prop up values in the short term, but Jenkinson warned it’s a fragile situation.
LINK: Kan. U.S. Senator helps reveal Farm Security Action Plan
“If foreign investment were to dry up or be banned, we could see land prices fall quickly,” he said, pointing to recent legislation aimed at restricting Chinese land purchases.
The emotional toll on the farm community is also growing. Fort Hays State University recently highlighted a surge in mental health concerns among agricultural workers, and suicide prevention is a growing focus among farm advocacy groups.
LINK: Fort Hays State University instructor honored for mental health advocacy in agriculture
“This is more than a financial crisis,” Jenkinson said. “It’s a mental and emotional one, too. If you or someone you know is struggling, reach out. This is a stressful time, but you don’t have to face it alone.”
As farmers brace for the remainder of the season, they continue to call for fair prices, stronger export demand, and policies that support family farms rather than foreign or corporate land ownership.
“Farming is a labor of love,” Jenkinson said. “But right now, love alone isn’t enough.”