Montana Grain Farmers Face 40% Cost Surge as Crop Prices Stay Depressed for a 3rd Year
Updated
Updated · Flathead Beacon · Jun 18
Montana Grain Farmers Face 40% Cost Surge as Crop Prices Stay Depressed for a 3rd Year
1 articles · Updated · Flathead Beacon · Jun 18
Summary
$43 billion in uncovered row-crop losses accumulated from 2023 to 2026 before the Strait of Hormuz closure, as production costs outpaced revenue $719 billion to $607 billion, Farm Bureau economist Kevin Newton said.
Since the 2018 Farm Bill, farm expenses have climbed 40% nationwide, led by 74% higher contract labor costs, 60% higher interest rates and 54% higher fertilizer prices.
Diesel near $5 a gallon in Montana and a fertilizer spike after the strait closure worsened the squeeze, with 54% of Montana farmers shielded only temporarily because they had pre-booked spring fertilizer.
Commodity prices have stayed weak for a third straight year—wheat is projected 26% below recent highs and barley 24% lower—though strong cattle and dairy prices have partly supported farm income.
Washington is now a key focus: the Farm Bureau expects $15 billion to $17 billion in farm payments this fall and is pressing the 2026 Farm Bill, higher FSA loan limits and H-2A labor reforms.
Why are American farmers going broke even as a global food crisis looms?
Will this crisis force a permanent shift in what and how America farms?
How can US agriculture survive when a distant conflict can sever its supply chain?
Montana Grain Farmers Face 2026 Financial Squeeze: High Diesel Costs, Record Global Grain Surplus, and Policy Responses
Overview
As of June 2026, Montana grain farmers are under severe financial pressure due to a combination of persistently high input costs and low commodity prices. This squeeze is mainly driven by ongoing global conflicts and shifting market dynamics, which have pushed diesel fuel prices much higher than gasoline, raising operational expenses. Even if diesel prices drop slightly, relief will be minimal during critical farming periods. At the same time, global grain oversupply has depressed wheat prices, leaving farmers with less income. These challenges are forcing farmers to rethink their operations and threatening the stability of rural communities.