By Jamie Martin
Tennessee's agricultural sector endured a challenging 2024, with poor production and low commodity prices marking a difficult year for farmers.
Patricia McDaniels, a senior media relations coordinator at the University of Tennessee, highlighted the impact of six major factors: drought, land loss, trade deficits, decreasing market demand, low yields, and poor commodity prices.
"The state’s agricultural and forestry industries directly and indirectly contributed $103 billion to the Tennessee economy," stated Andrew Muhammad, a UTIA professor. However, he noted, "2024 was a struggle for many of our producers and sectors.
Next year could also be difficult, with trade policy uncertainty, low crop prices, drought- and hurricane-reduced feed supplies and high input costs."
The annual economic report to the governor outlined a grim forecast for 2025, influenced by these ongoing challenges. Corn, cotton, soybeans, and wheat, which are Tennessee’s top crops, saw a significant price drop in 2024.
Gross cash receipts for these staples are expected to decline substantially, reflecting the hardships faced by the state's farmers.
Additionally, the report indicates a problematic financing environment for 2025’s crop due to the declines in gross revenue, potentially leading to consolidation in the row crop sector. "Many crop producers will struggle with obtaining financing for the 2025 crop, which could affect production," Muhammad and his co-authors warned in the report.
Despite these challenges, the value of animals and animal products saw a slight increase, providing a glimmer of hope for the livestock sector. However, the future remains uncertain with high interest rates and inflation affecting operational costs.
For more details, visit the UT Institute of Agriculture’s website.
Photo Credit: gettyimages-eugenesergeev
Categories: National