Georgia Ag Forecast Points to Modest Growth and Continued Cost Pressures
The Georgia Ag Forecast, presented last week to agricultural stakeholders across the state, outlined a mixed economic outlook for the industry in the near term. Economists highlighted modest national economic growth, stabilizing inflation, and slightly improved farm income, while also warning that rising production costs and stagnant commodity prices could weigh heavily on Georgia producers.
According to the forecast, the U.S. economy is expected to grow by roughly 2% in 2026, in line with growth rates observed during the second half of 2025. Inflation is projected to continue trending downward, moving closer to the Federal Reserve’s long-term target rate of 2%. A more stable inflation environment could offer some relief to producers, though economists cautioned that many input costs remain elevated.
USDA projections show net farm income rising slightly to approximately $180 billion, compared to $179 billion last year. While the increase is modest, it reflects improved net cash income across the sector. Economists noted that rising receipts from annual agricultural products are expected to offset losses in certain crop categories, helping support overall farm income levels.
Despite the positive income outlook, production expenses remain a key concern. Both nominal and inflation-adjusted production costs increased in 2025, driven largely by higher prices for feed, livestock and poultry inputs, and labor. Chemical input costs, however, showed a slight decline, offering limited relief for crop producers.
The combination of stagnant commodity prices and higher operating costs is creating a challenging outlook for many producers. Economists warned that this imbalance is likely to result in a negative outlook for most of Georgia’s major crops in the coming year. While some sectors may benefit from stronger demand or improved efficiency, margins are expected to remain tight across much of the industry.
Overall, the Georgia Ag Forecast emphasized the importance of careful financial management and risk planning as producers navigate the months ahead. While economic growth and easing inflation provide a relatively stable backdrop, ongoing cost pressures and uncertain price recovery will continue to shape decision-making for Georgia agriculture in the near future.
Audio Reporting by Tyron Spearman for Southeast AgNet.