Margins Get Tighter As Commodity Prices Continue To Drop

The prices received by producers nationwide decreased to end 2025.

USDA said the Prices Received Index dropped 3.1% from November’s reading, and 4.6% year-over-year.  The Crop Production Index was down 2.4% month-over-month, and off 3.4% from December 2024.  The Livestock Production Index, fell 5.7% from November to December, and dropped 13% from late 2024.

USDA noted in December, producers received lower prices for market eggs, lettuce, cattle and milk but higher prices for broilers, corn, grapes, and calves.

In addition to prices, the volume change of commodities marketed also influences the indexes. In December, there was decreased monthly movement for grapes, corn, calves and soybeans and increased marketing of market eggs, broilers, oranges and milk.

Meanwhile, what farmers paid for their inputs increased 0.3%, and up 8.5% from December 2024.

Higher prices in December for feeder cattle, feeder pigs, nitrogen, and concentrates more than offset lower prices for diesel, gasoline, complete feeds, and hay & forages.

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