By: Tracy Turner
COLUMBUS, Ohio — As Ohio’s agricultural community prepares for 2025, many farmers, growers, producers, and agribusinesses face continued economic pressures, including declining commodity prices, rising production costs, and ongoing uncertainty in trade and labor markets, according to agricultural economists from The Ohio State University College of Food, Agricultural, and Environmental Sciences (CFAES).
Adapting to these challenges will require strategic planning and proactive steps, said Ian Sheldon, CFAES professor and holder of The Andersons Endowed Chair in Agricultural Marketing, Trade, and Policy in the CFAES Department of Agricultural, Environmental, and Development Economics (AEDE).
“Farmers will face a tough year as commodity prices remain low and production costs continue to rise,” he said. “However, focusing on farm management strategies — such as reducing input costs, delaying capital purchases, and carefully planning land purchases — will help Ohio’s agricultural community weather these economic challenges.”
The economic outlook was a key focus of the 2024 Agricultural Outlook and Policy Conference held in November. The daylong conference provided key insights into the challenges and opportunities that Ohio’s farmers will face in 2025.
Among the critical issues discussed were downward pressure on farm margins, the absence of federal support through safety net programs such as Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC-CO), and concerns about the impact of future trade and immigration policies on farm labor costs.
Ohio’s agricultural industry is facing price pressures similar to other Midwestern states, further compounded by lower yields for both corn and soybeans in 2024, Sheldon said.
“Given the rather pessimistic outlook, it’s essential for farmers to implement strategies to mitigate the impact of lower farm incomes,” Sheldon said. “This can include reducing input costs, carefully planning land purchases, and estimating cash rents to better project future cash flows.”
Despite these challenges, Sheldon remains optimistic about the potential for Ohio’s farmers to find opportunities through careful planning.
AEDE economists will continue offering opportunities for farmers and agribusinesses to stay informed. Several agricultural outlook and policy meetings will be held throughout Ohio in early 2025, providing crucial insights about key topics such as commodity prices, farm income projections, and agricultural trade policy.
Margaret Jodlowski, AEDE assistant professor of agricultural economics, will focus on agricultural labor issues, while Sheldon will address topics related to agricultural trade. Seungki Lee, AEDE assistant professor specializing in grain markets, will present at multiple workshops, including updates on grain market conditions and strategies for managing commodity pricing. Sheldon will also present at several meetings on the outlook for agricultural trade and policy.
These events will offer timely insights and the latest data to help Ohio’s agricultural community stay ahead in a volatile market. “The upcoming meetings will provide the information farmers need to make informed, strategic decisions,” Sheldon noted. “With so much uncertainty, staying ahead of market trends will be crucial.”
Upcoming agricultural outlook and policy meetings include:
- Jan. 7: Wayne County Ag Outlook, Wooster, Ohio
- Jan. 25: Ohio Farmers Union Annual Convention, Lima, Ohio
- Jan. 28: Pickaway County Ag Outlook and Policy Meeting, Circleville, Ohio
- Feb. 28: Mercer County Ag Outlook Day, Celina, Ohio
These sessions will help agricultural stakeholders stay informed about emerging trends and will provide the latest data to navigate a volatile market. For further information, contact aede@osu.edu.