Tennessee agriculture faces 'commodity chaos,' commissioner says

Commissioner Andy Holt told the Senate Energy, Agriculture and Natural Resources Committee that Tennessee row-crop producers faced “commodity chaos” in 2025 as drought, low commodity prices and rising input costs combined to produce large financial losses.

Holt said per-acre losses were deep across major row crops and that cumulative losses for corn, soy, wheat and cotton in 2025 were initially estimated at $476,000,000 but fell to $192,000,000 after crop insurance and federal supports. He summarized the scale plainly: “this problem is so large, there is no single solution,” and urged a portfolio of state, federal and private actions instead.

Why it matters: Holt said negative margins have persisted for two consecutive years and warned 2026 could be similarly difficult unless producers gain access to new markets, value‑added processing and targeted support. He listed immediate pressures as steep fertilizer and seed costs, energy inputs, high interest rates and increased competition from international producers.

Holt and his staff described initiatives to address the gap, including producer listening tours, a farm profitability working group (Tennessee Farm Bureau, Farm Credit Services, UT Extension and TDA), and export-focused marketing through U.S. industry councils. Holt also tied diversification and education programs to these efforts, saying the department will bring lists of district projects to members and pursue federal funds where available.

The committee took no formal action on program changes during the hearing; members asked for further engagement and data from TDA before any legislative steps.