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Mississippi ag leaders warn of widespread losses, urge federal and state action
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Summary
University researchers, lenders and farm groups told the Senate Agriculture Committee that 2024 losses and high input costs leave many Mississippi producers financially vulnerable and that federal and state policy makers must update the farm safety net and support extension services.
Mississippi State University and industry groups told the state Senate Agriculture Committee on Monday that steep input costs and low commodity prices left many row‑crop producers operating at a loss in 2024 and that a repeat in 2025 could force widespread land turnover and bankruptcies.
"This farm bill is already 2 years late," said Dr. Keith Coble, representing Mississippi State University, summarizing the federal policy gap he said left producers with only a temporary emergency payment and no long‑term safety net. He told senators the state needs more funding for extension and research to help farmers with financial management, marketing and input‑cost reductions.
The warning came from several presenters who gave economic snapshots and policy recommendations. Alan Grafton of Pinion Global presented bookkeeping and breakeven data from 22 commercial operations across roughly 153,000 acres and said those operations posted roughly $22 million in cash losses, an average of about $146 per acre. Extrapolating similar patterns statewide, he estimated total losses could approach $550 million for Mississippi’s principal row crops. "We're projecting right now going into the year that they're gonna lose $3,000,000," Grafton said about a single large grower in his sample.
Why this matters: agriculture is a major driver of Mississippi’s rural economy. Presenters said farm losses ripple into equipment dealers, seed and fertilizer suppliers, labor markets and local governments, and could accelerate the sale of family farms to nonoperating investors.
Key facts and context
- Dr. Keith Coble, representing Mississippi State University, said universities and extension are trying to help producers improve record keeping, crop‑by‑crop cost accounting and marketing decisions. He noted two federal program deadlines farmers face: Feb. 28 for crop insurance selections and April 15 for ARC/PLC program choices.
- Alan Grafton, representing Pinion Global, reported measured results from client books: average yields (for his sample) included 64 bushels per acre for soybeans and 203 bushels per acre for corn; cash‑loss averages and breakeven calculations showed, for example, that soybeans would have needed about 84 bushels to breakeven in his sample and corn about 255 bushels (figures taken from the sample set he reviewed).
- Delta Council president Tripp Hayes said the organization and others pressed the congressional delegation for ad hoc assistance in 2024 and thanked U.S. Sen. Cindy Hyde‑Smith and U.S. Rep. Trent Kelly for their work. He said the 2025 outlook remains bleak and that the Delta is seeing land turnover reminiscent of the 1980s farm crisis.
- Mike McCormick, president of the Mississippi Farm Bureau Federation, cited national figures showing deep declines in farm profitability and said Mississippi received about $152 million from the recent federal ad hoc assistance package; he and other presenters urged Congress to pass an updated farm bill that raises reference prices and modernizes the Title I safety net.
Policy and state options discussed
Speakers urged both federal and state responses: pass an updated farm bill at the federal level and provide state support to conserve farmland and preserve agricultural infrastructure. Delta Council and Farm Bureau asked the legislature to support bills they say protect access to crop protection tools (identified in testimony as Senate Bill 2472 and House Bill 1221) and to avoid new state or local tax or regulatory changes that would add costs during this fragile period.
Other topics raised in the hearing
- Extension and mental health: Coble said county extension agents have been trained in mental‑health recognition and that about 15% of agents have used that training while assisting farmers under stress.
- Labor and inputs: Grafton said most of the large Delta operations he tracks are using H‑2A guest worker labor; presenters also highlighted fertilizer, seed, fuel and rent as major cost drivers that rose far faster than general inflation over the last decade.
- Estate tax and land succession: Grafton and others warned that the scheduled drop in the federal estate tax exemption at the end of 2026 (from near $14 million per person to about $7 million in testimony) could force sales of family land to pay taxes unless state or federal measures address succession costs.
What was not decided
The committee did not take any formal votes or adopt new policy at the hearing. Presenters asked lawmakers for continued legislative attention, more funding for Mississippi State Extension and research, and federal reform of the farm safety net; committee members asked for additional data and follow‑up briefings.
Ending
Committee members signaled they will continue hearings and requested follow‑up materials from Mississippi State and industry groups. Presenters said they will provide further analysis and recommendations to the committee on both short‑term financial relief and longer‑term policy changes to support farm viability.
