Commentary: Farmers fear the 1980s economy is coming back

In 1985, John Mellencamp released his song "Rain on the Scarecrow," which tells the story of farmers forced to foreclose their land amid the 1980s recession. And as bad as farmers hate to admit it, they are facing similar economic peril today, according to Krista Swanson of the National Corn Growers Association.  

Swanson, chief economist for the NCGA, said the parallels of today compared to the 1980s are apparent. High costs for fuel and seeds are squeezing farmers, and since 2022, inflation has been driving profits down.

Lisa Foust Prater reports for Successful Farming that this was also the case between the mid-1970s to the mid-1980s. "Swanson said she's noticing red flags including weakening in terms of loan repayments, farmer debt levels relative to assets, and a cumulative drop in negative net returns between 2023 and 2025 that is the sharpest relative drop back to when that data set began in 1975."

Even though the high prices of the 1980s farm economy are reappearing, Swanson said we are yet to see high interest rates like the 1980s, noting there is more market opportunity than 40 years ago. Swanson said the solution is creating a competitive market for farmers — both domestically and internationally — in hopes of increasing profits and reducing operating costs.