FRANKFORT, Ky. — Kentucky legislators gathered for a briefing on agricultural economics on June 4, 2025, hearing sobering assessments from university experts and lending officials about the state's farming sector, which faces declining working capital, rising input costs and weak grain prices despite some brighter spots in livestock markets.

Kenny Burdine and Jonathan Shepherd from the University of Kentucky's Department of Agricultural Economics, along with Mark Barker of Farm Credit Mid-America, presented during the Interim Joint Committee on Agriculture meeting. They identified both strengths and mounting pressures across Kentucky's agricultural landscape.

On the positive side, economists pointed to robust cattle prices, healthy land asset values, growing agritourism, and solid average farm balance sheets. However, challenges loomed large. Burdine forecasted Kentucky farm cash receipts of approximately $8 billion for 2025 and a similar figure for 2026, though the composition masks underlying strain.

Grain farmers face particularly difficult conditions. Burdine and Shepherd highlighted declining working capital, uncertainty around fertilizer and fuel costs, elevated interest rates and significant entry barriers for young farmers. Geopolitical tensions, asset devaluation, liquidity pressures and margin compression further complicate the outlook.

Committee Co-Chair Sen. Jason Howell, R-Murray, stressed agriculture's importance to Kentucky's integrated economy. "We have an integrated economy, and farms in Fulton County...produce jobs in Jefferson County," he said, emphasizing how rural and urban communities remain intertwined through agricultural commerce.

Rep. Sarah Stalker, D-Louisville, urged policymakers to recognize climate risks. "We've got an increase of natural disasters — floods, droughts, wildfires, hurricanes — and temperatures that will continue to rise, which will increase new pests and disease," she said.

Farmland loss and aging farmers also concerned legislators. Rep. Ryan Bivens, R-Hodgenville, expressed alarm about declining agricultural acreage and rising average farmer age. Barker acknowledged no single solution exists, noting that estate disputes and development pressures often force farm sales. "Any time we see a farm sale, there's typically a reason why," Barker said. "Well, now it's open to developers or anybody else that comes in and buys that."

When asked to grade Kentucky agriculture, Shepherd offered cautious optimism about farmers themselves. "I would give them an A+ from the farm side," he said of the state's agricultural producers.