Georgia Farmers Face Tight Margins Despite Strong Yields in 2025

Tifton, GA |

As 2025 came to a close, Georgia farmers found themselves reflecting on yet another year of economic uncertainty—one defined by rising input costs and commodity prices that continued to lag behind. Despite seeing high yields across many row crops, those numbers didn’t always translate to profit.

“The 2025 crop year was a really bountiful year in terms of production for a lot of the row crops—here in Georgia, as well as in the rest of the United States,” said Amanda Smith, Senior Public Service Associate with the University of Georgia. “We’re looking at a large production of corn, a large production of soybeans, large production of peanuts, particularly here in Georgia. We did see production down in terms of cotton because of fewer planted acres. But yields were great.”

While those yields may sound promising, Smith explained they had little impact on prices.

“Even though there were lower acres in some of the commodities, yields were really great. And so, we’re still looking at pretty good production. And that’s not really helping to change prices too much from where they are,” she added.

Still, there’s cautious optimism heading into the new year. Relief payments through programs like the Farm Bridge Assistance Program and the One Big Beautiful Bill are expected to go out in 2026. That, combined with more stable input costs, could give producers some breathing room.

“Some of the good things that I’m seeing from a cost standpoint is that interest rates should be a little bit lower next year,” Smith noted. “We’ve seen some relief from that standpoint. Also, from a crop insurance standpoint, there’s going to be higher subsidies on the premiums for growers. So, crop insurance should be more affordable for producers next year. And we’ve also seen fuel prices remain down.”

As farmers begin preparing for the upcoming planting season, Smith says the first step should be taking stock of where things stand—something that can be greatly aided by tools available through UGA Extension.

“Really, the biggest piece of advice for growers is that they have to know their cost of production,” she emphasized. “There are enterprise budgets available that the University of Georgia puts together on the different commodities. They can use that as a template and guide and put in their numbers based on what production practices they plan to use—whether it’s irrigation, conservation tillage or the specific inputs they plan to utilize. Go down to the penny and know what their cost of production is. Because once they know that, then they can figure out what their break-even price is and see if they can forward price some of the commodities that they’re growing and try to lock in a profit.”

By: Damon Jones