Searching for financial viability in today’s ag

Washington agriculture has long been a cornerstone of the state’s economy. Today, however, the question facing farmers is not how much we can produce, but whether we can remain financially viable while doing so. One of the biggest challenges is rising input costs, while wheat prices remain roughly the same as they were 40 years ago.

Agricultural viability has become an increasing concern over the last several years. While farming has always faced difficult cycles, we are now losing more farmers than ever before. In Washington alone, we are losing an average of two farms per day, more than 3,700 farms between 2017 and 2022. During that same time, the state lost over 102,000 acres of farmland. Washington agriculture is overwhelmingly family-based: 96% of farms are family-owned and operated, accounting for 93% of total production and contributing 12% to the state’s economy.

Agricultural viability can be defined as “the ability of a farming operation or system to remain functional, profitable, and sustainable over the long term.” On my farm, we are constantly working to meet these standards, knowing that each of these components depends on the others for long-term success. Since returning to the farm full time in 1993, I have seen and helped implement significant changes, from updating farming practices to improving crop marketing strategies. We strive to be good stewards of the land, remain resilient in the face of economic and climate challenges, and maintain the capacity to sustain production over time.

Right now, profitability is the greatest challenge. We have been in a downward economic slide for more than three years, with Washington state agriculture ranking last in profitability compared to other states. Meanwhile, input costs such as fertilizer, fuel, seed, pesticides, and wages have risen at alarming rates. For many wheat farmers, margins have turned negative. As a result, farms have become increasingly reliant on government payments, which have made up a significant portion of income in recent years. Most farmers do not want to depend on government support to survive. Long-term reliance on subsidies is not a sustainable model for agriculture, nor is it the future most farmers envision for their operations.

There aren’t any easy answers. Wheat trades on the global market, so farmers can’t set their own price. Controlling input costs, including worker wages, is also out of our hands, and we have to rely on the state and federal government to help regulate those. Passing a farm bill would help provide some certainty, as would making sure crop insurance remains a viable safety net. It’s a depressing outlook and will likely remain so until the global market has an upturn. Unfortunately, for that to happen, there will have to be a negative event that threatens the world’s wheat supply. That likely means some wheat farmer somewhere will have to lose much of their crop, and I don’t wish that on anybody.

For now, Washington wheat farmers will keep moving forward, doing our best to keep costs down and working to keep the farm viable another year.