American Farm Bureau Federation economist Danny Munch met with Wyoming Farm Bureau Federation members to outline the economic pressures shaping today’s farm and ranch landscape. Backed by data, he walked delegates through what he called “a tale of two farm economies,” describing the contrast between struggling crop sectors and stronger livestock markets. 

“Across the country, producers are facing turbulence from every angle,” Munch said. “The goal is to understand the pressures and show how Farm Bureau’s grassroots work is delivering real economic value back to our operations.” 

He began by outlining the divide between sectors. Crop producers continue to face low commodity prices with per-acre losses ranging from $111 to more than $300, depending on the crop. “Southern farmers are acutely feeling the pressure,” he said. Specialty crop growers, he added, are seeing modest price increases erased by steep jumps in labor, fertilizer and pesticide costs. 

Rising expenses are a central concern. USDA now projects farm production costs at a record $467 billion. “Interest expenses are at record levels. Transportation is at record levels. Cash labor is at record levels,” Munch said. Even as some inputs moderate, he noted that many prices “still aren’t covering the cost of production.” 

He also pointed to mounting regulatory burdens, using California as an example. “A lettuce producer once paid about $100 an acre in regulatory costs,” he said. “Now it’s $1,600 an acre. That puts American farmers at a competitive disadvantage with countries that don’t have those compliance costs.” 

Exports remain essential. Munch noted that tree nuts, cotton and dairy rely heavily on foreign markets, with large percentages of production heading overseas. “American farmers are the best in the world at producing food,” he said. “We produce more than our consumers eat, and that means exports matter.” 

Trade disruptions remain a major challenge, particularly with China. “We went from $41 billion in ag exports to China to a precipitous drop,” he said. While recent announcements suggest potential movement, Munch said follow-through remains uncertain. 

He highlighted how rhetoric can influence markets, pointing to Canada’s steep drop in American wine purchases following political tensions. “Words have consequences, even in trade,” he said. 

Turning to Wyoming-specific concerns, Munch discussed drought and cattle herd liquidation. “Every spike in drought corresponds with herd reductions,” he said. He emphasized the emotional and economic strain of selling animals built over generations. Even with strong cattle prices, he reminded members that costs have risen 55% over the same period. 

Record beef imports also complicate the market. “We already import 12 to 14% of our beef, and this year we’re at record highs,” he said. “That’s not how you support producers.” 

Global competition is intensifying, especially from Brazil. “Brazil is massive,” he said. “Their main crop region is the size of six Illinois, and they can grow two to three crops a year. We grow one.” As Brazil improves infrastructure, he warned, its competitive edge grows. 

Transportation bottlenecks further limit U.S. competitiveness. “Ninety-five percent of containers are manufactured in China,” Munch said. “We don’t have a single U.S. port ranked in the top 50 for efficiency. Brazil does. That matters for exports and reliability.” 

Farm numbers continue to decline, with the U.S. losing 140,000 farms in five years. He cautioned that USDA income forecasts may be misleading because a significant portion reflects last year’s disaster payments rather than true earnings. “More than half of producers had negative farm income last year,” he said. “At the median, farms lost $900. That’s not sustainable without off-farm income.” 

He explained that farming families often rely on spouses or operators working outside agriculture for health insurance and retirement benefits. “Farm households earn 77% of their income off the farm,” he said. “It’s part of how rural communities stay viable.” 

Munch then shifted to Farm Bureau’s Farm Bureau Advantage project, which measures economic returns from policy wins. He noted the California Farm Bureau’s ag equipment tax exemption as one example. “The average farmer saved over $2,000 a year,” he said. “That alone covered the cost of membership.” 

Nationally, Farm Bureau’s work in tax policy, disaster assistance and program enhancements delivers substantial returns. “For the average farm, tax savings alone are around $5,000 a year,” he said. Economic assistance programs authorized last year brought an average payment of $15,000 to participating farmers. Specialty crop marketing support averaged $34,000. In Wyoming, drought-related assistance averaged $14,000 per applicant. 

“Even if you benefit from just one of these programs, the return on an $80 membership is enormous,” he said. “Whether or not someone belongs to Farm Bureau, they’re benefiting from the work you do.” 

He closed with Western-focused research on grazing, wildlife and pest impacts. Munch highlighted the economic value of public lands grazing, estimating $1 billion from forage alone and $3.7 billion in ecosystem services. “If ranchers disappeared, the federal government would have to take over management,” he said. “It would cost billions.” 

He also shared losses tied to depredation, weight loss due to predator presence and forage competition from grasshoppers and Mormon crickets. “Thirty pounds of grasshoppers eat the same amount as a 600-pound calf,” he noted. 

Munch encouraged members to continue sharing their on-the-ground experiences. “Your data and your stories help shape better policy,” he said. “And Farm Bureau is working every day to make sure that value comes back to your operations.”