The Financial Condition of Idaho Agriculture: 2025

By Sean Ellis

Idaho Farm Bureau Federation

BOISE – According to an annual report by University of Idaho economists, the financial condition of Idaho agriculture is mixed, but mostly not good.

The university’s “Financial Condition of Idaho Agriculture: 2025” report was released to lawmakers Jan. 14. It estimates that Idaho farmers and ranchers brought in a record $12.1 billion in farm-gate receipts in 2025.

If realized – the report’s farm-gate receipt estimates are normally pretty accurate – that would represent a 2 percent increase over 2024.

However, that number, in itself, doesn’t tell the real story of what is happening in farm country.

While revenue from the state’s livestock sector is forecast to be up in 2025, it’s a different story for the crop sector, which has been experiencing low farm-gate prices that are, in many cases, below what it costs the farmer to produce the commodity.

“Yes, we’re forecasting a new all-time high number for cash receipts, but that does not mean we are expecting increased tax revenues from the agricultural sector,” said U of I agricultural economist Brett Wilder, one of the report’s authors. “There are likely going to be some negative net incomes across the crop sector.”

The report estimates total farm-gate revenue from Idaho’s livestock sector at $8.2 billion in 2025, which is a 9 percent increase compared with 2024. It forecasts crop revenue at $3.9 billion, which is a 9 percent decrease from 2024.

“The top-line ($12.1 billion) number looks really strong, but there is a lot of weakness across the ag sector and there should be some weakness across especially the crop side of the ag sector for a few years to come,” Wilder said.

The report was co-authored by agricultural economist Xiaoxue “Rita” Du.

It estimates negative total farm-gate revenue in 2025 from virtually all of Idaho’s main crops. It shows potato receipts down 12 percent, revenue from sugar beets down 17 percent, barley down 6 percent and wheat down 5 percent.

Hay is the only major crop in Idaho estimated to have more revenue (up 2 percent) in 2025 than 2024. However, the forecast hay receipt total of $387 million is 29 percent below the previous five-year average and 48 percent lower than the all-time high of $750 million set in 2022.

During a presentation to dry bean growers Jan. 29, U of I agricultural economist Pat Hatzenbuehler said it’s a tough time right now for all crop farmers.

“It’s not just dry beans,” he said. “All of the other major crops are experiencing outlooks that are pretty bearish. It is just a tough, challenging environment for crop farmers in the United States.”

The livestock sector is another story.

With farm-level beef prices at record highs, the report estimates the state’s cattle and calves sector brought in a record $3.9 billion in farm-gate revenue in 2025.

That’s an 18 percent increase over 2024 and it makes cattle and calves, by a smidgeon, the state’s new top ag commodity in terms of total farm-gate revenue. That’s a spot milk had held for more than 20 years.

Milk revenue in 2025 was estimated at $3.888 billion, up very slightly but essentially unchanged from 2024.

Farm-gate milk prices in Idaho were 7 percent lower in 2025, but that sector benefitted from high beef prices, since all milk cows are eventually processed. Idaho dairies also produced more milk last year, which helped keep total revenue the same.

“Despite lower milk prices, a 7 percent increase in year-over-year milk production allowed milk revenues to see a marginal increase … in 2025,” the report states.

The report also expects milk to regain its No. 1 spot soon.

“Revenues from milk production are expected to reclaim their place as the highest of all agricultural commodities produced in Idaho in 2026 or 2027,” it states.

The report does estimate that net farm income in Idaho increased 6 percent in 2025, to $2.75 billion. But, again, most of that increase is because of the relative health of the livestock industry.

The projected 6 percent increase in net farm income is 1 percent below the previous five-year average.

The report estimates total Idaho farm revenue in 2025 at $13.2 billion. This includes farm-gate revenue and other things such as government payments, farm-related income, home consumption and inventory adjustments.

Total expenses are estimated at a record $10.4 billion, a 3 percent increase over 2024. This includes manufactured inputs, farm-origin inputs, contract labor, property taxes and fees, capital consumption and payments to stakeholders.

Total federal government payments to Idaho farmers are estimated at $100 million in 2025, up 4 percent compared with 2024, which marked the lowest point since 2015. That $100 million total means less than 1 percent of Idaho’s total farm revenue in 2025 came from government payments.

According to the report, Idaho’s livestock sector is forecast to account for 68 percent of total farm-gate receipts in 2025. This sector includes cattle and calves and other livestock such as trout, sheep and chicken eggs.

“Idaho agriculture is driven largely by livestock,” the report states. “Except for 2009 – a year of disastrously poor milk prices – livestock cash receipts have surpassed crop cash receipts for every year since 2001.”

“While Idaho’s agriculture industry appears strong in aggregate, nearly all revenue gains for the past two years can be attributed to the livestock sector,” the report states. “A majority of crop producers are expected to be worse off than a year ago.”