LITTLE ROCK, Ark. (KATV) — The net income for Arkansas farmers is dropping by 8% in 2025 alone, according to a report by the University of Arkansas System Division of Agriculture and the Rural and Farm Finance Policy Analysis Center.

There has been quite a bit working against farmers this year, particularly torrential rainfall and declining crop prices. Hunter Biram, an extension economist with the University of Arkansas System Division of Agriculture, suggests that the best-case scenario of Arkansas farmers at this point is still not promising.

“We do not account for farmers to be able to pay themselves a wage, so the best-case scenario for a farmer is to volunteer their time to show up and plant the crop and break even.”

In 2024, Arkansas’ net farm income was $3.17 billion. In 2025, the net farm income is $2.91 billion.

According to Biram, this is nothing new. “Since 2022, crop prices have declined right about 27%, so this 8% is not an isolated decline, it’s not like we’ve seen some fluctuations, we’re entering a third straight year of a decline in the state of Arkansas.”

Biram says that rice, soybeans, corn, cotton, wheat, and peanuts, are the crops that have all seen a drop in value. “On average, we saw about an 8% decline in all of those crop prices year over year.”

Biram says that the farm safety net presented by the so-called “Big Beautiful Bill” is expected to provide relief to farmers across the country. However, farmers will have to wait on that relief.

“They won’t receive that cash from a cash inflow perspective until a year from now, and farmers need to go to the bank right now,” says Biram.

Throughout this time, Biram says farmers have been hopeful, especially with potential measures aimed to help them in 2026. There is still significant doubt though.

“Farmer are eternal optimists, and they always want things to be better, but right now, there is nothing to be optimist about in terms of where the markets are right now.”

Why is this important for Arkansas?

Agriculture is the #1 industry in the state, accounting for 8% of Arkansas’ gross domestic product. That is the greatest share of the GDP across all of the southern United States.

Click here to view the full report.