Farm Director KC Shepherd spoke with Faith Parham, an Economist at the American Farm Bureau Federation, about the ongoing struggles in the U.S. farm economy, the high cost of inputs, and the critical importance of trade deals and farm safety nets. Parham painted a clear picture of the difficulty facing farmers and ranchers, noting that the struggles have persisted for a few years. Low Prices: The sector is seeing historically low crop prices. High Costs: These low prices are accompanied by record production costs. “When you add those two numbers together, it’s not looking good for our farmers and ranchers,” Parham said, emphasizing the need to focus on building markets both domestically and abroad.

Producers are currently battling the dual challenge of low prices and soaring input costs. Parham highlighted a small win related to input costs. Fertilizer Tariffs: The Trump administration has removed tariffs on fertilizer, which is a good first step toward bringing those costs down. Looking forward, the focus will be on further investigating where high prices are originating and how they can be affected at a national level to make them more feasible for producers.

Regarding the latest legislation, the big beautiful bill, Parham noted its strengths and weaknesses: What It Covered: The bill reinvested in farm safety net programs. This included significant investments in crop insurance and Title 1 programs, which will benefit farmers in the future. However, these changes do not come into effect until next year.

Dr. John Long, Associate Professor and Agricultural Engineer at Oklahoma State University, spoke with Associate Farm Reporter Carli Davenport about drones being used in agriculture. Dr. Long says drones are becoming an important tool for farmers and ranchers. “Drones are being used a lot of different ways in agriculture,” he explains, “from just being able to take imagery and do some scouting, looking for livestock, and then also some of the bigger drones are now being used for applying pesticides.” Their versatility, from crop monitoring to livestock management, is driving wider adoption across the industry.

When it comes to accuracy in pesticide application, Dr. Long says drone technology is keeping pace with traditional methods. “I would say they’re as accurate as most any other type of sprayer out there,” he notes. However, he adds that “there’s not a whole lot of research out there,” which is why “Oklahoma State is collecting some of that research and providing it to the public.” He emphasizes that much of a drone’s performance “really boils down to who’s operating it,” highlighting the importance of proper training and management.

Regulations also play a key role in how drones can be used in agriculture. Dr. Long explains that larger drones especially fall into that category, “all of those require you to have a remote pilot’s license, which is a license that’s issued by the FAA.” This certification process, he says, involves understanding “regulations and airspace rules.”

Throughout November, the Oklahoma Association of Conservation Districts (OACD) hit the road, hosting five Area Meetings across the state to address pressing issues impacting rural Oklahoma. Billed as the “Conservation Conversations” the annual event featured local Conservation District Directors and Staff collaborating with state legislators on key “hot topics” straight from the Capitol.

The discussions were moderated by Clay Pope and Jean Lam, with the central panel featuring OACD President Ed Casey (a rancher and wind energy contract holder) and Trey Lam, Executive Director of the Oklahoma Conservation Commission (OCC).

The core of the roadshow centered on legislative action concerning three rapidly developing areas of conflict in rural communities: Wind and Solar Energy Development: Discussions covered proposed legislation on setbacks for wind turbines, as well as complex issues surrounding solar projects. Biosolids Application: The sessions provided updates on potential biosolids moratoriums or phased-in application plans on agricultural land.

U.S. Secretary of Agriculture Brooke L. Rollins announced the U.S. Department of Agriculture’s (USDA) intent to purchase up to $30 million in fresh fruit from American farmers and producers to distribute to food banks and nutrition assistance programs across the country. These purchases are being made through USDA’s authority under Section 32 of the Agriculture Act of 1935 and will assist producers and communities in need. With this action, the Trump Administration is bolstering American prosperity by supporting American agriculture, rural communities, and those in need of nutrition assistance.

“President Trump is standing with America’s farmers, especially right now while the farm economy recovers from years of neglect under the last administration. Certain commodities are experiencing a surplus and USDA is ensuring these crops do not go to waste and instead go to Americans in need across the country,” said Secretary Brooke Rollins. “These fresh fruits will reach those in need, boosting healthier options for Americans at food banks across the country, all while benefitting American farmers facing unfair actions from foreign competitors.”

On an ongoing basis, AMS purchases a variety of domestically produced and processed agricultural products as authorized by Section 32 of the Agriculture Act of 1935.

In a recent cow calf article, Dr. Derrell Peel says Industry fears about the impact of packer losses and low cattle numbers were realized in late November with the announcement from Tyson that the Lexington, Nebraska, packing plant would close and the Amarillo, Texas, plant would decrease from two shifts to one shift in the coming months. This will reduce industry slaughter capacity by roughly 7,000 to 8,000 head per day. The exact impact will depend on forthcoming details, especially how Tyson will manage a one-shift plant. Depending on the details, the reduction represents roughly 7.5 – 9.0 percent of total industry slaughter capacity.  

Monday – Friday daily fed slaughter thus far in 2025 has averaged 90,529 head per day, down 3.6 percent from the recent peak (93,931 head per day) in 2022. However, Saturday slaughter has averaged 4,878 head this year, just 13.1 percent of the 37,137 head per day average in 2022. For the first 45 weeks of the year, total weekly fed slaughter has averaged 457,524 head compared to 506,793 head per week in 2022, a decrease of 9.7 percent. The Tyson planned reduction in packing capacity may be nearly (but not quite) enough to balance the decrease in cattle slaughter since the peak in 2022. However, fed slaughter is expected to continue decreasing in 2026 and 2027. Excess packing capacity will continue to be an issue for beef packers for the foreseeable future. 

In other news last week, the latest spins of the big tariff roulette wheel included lifting the 10 percent tariffs imposed in April on countries from which the U.S. imports beef.  Major beef import sources are Brazil, Australia, New Zealand, Canada, Mexico and Uruguay, along with minor sources including Nicaragua and Argentina.