The O. D. Butler, Jr. Animal Science Complex on Thursday, Aug 21, 2025 in College Station, Texas. (Hannah Harrison/Texas A&M AgriLife)
Welcome to our final post of the year. Today, we will review the economic topics that garnered the most attention in 2025 and discuss some of the challenges we anticipate in the upcoming year. Enjoy this Holiday Season, and see you all next year!
As 2025 comes to a close, it is clear this year brought no shortage of challenges and opportunities for agricultural producers across Texas and the Plains. From shifting farm policy
and volatile markets to ongoing weather concerns and financial stress, producers were asked to make important decisions in an increasingly complex environment. Throughout the year, Ag Economics on the Plains focused on providing timely and practical information to help producers navigate uncertainty and plan ahead. This year in review reflects the major themes that shaped agriculture in 2025 and the questions producers faced along the way.
Policy Changes and Producer Support
Federal agricultural policy played a significant role in shaping the 2025 production and planning environment. Changes to farm safety net programs under the One Big Beautiful Bill Act prompted many producers to reevaluate how ARC CO and PLC fit into their risk management strategies. Understanding how reference prices, revenue triggers, and payment structures interact became increasingly important as margins tightened. In addition, new federal assistance efforts aimed to provide short term financial support for
producers experiencing continued economic pressure. Access to clear information on eligibility, timing, and how these programs fit within broader policy goals was critical as producers worked through challenging financial decisions.
Managing Risk in a Complex Agricultural Economy
Risk management remained a central concern throughout 2025 and specially next year. Producers continued to face a combination of unpredictable weather, evolving regulations, and volatile commodity markets. Navigating this environment required careful evaluation of both production and financial risk, as well as the ability to separate meaningful market signals from short term noise. Insurance tools were an important part of that conversation, particularly as drought conditions persisted across large portions of Texas. Awareness of available coverage options and key deadlines helped producers better protect forage resources and manage weather related risk.
Livestock and Grazing Management Decisions
For livestock producers, 2025 reinforced the importance of thoughtful planning and flexible decision making, especially for stockers operations. Grazing management strategies played a key role in maintaining pasture health, supporting herd performance, and preserving long term productivity. Economic decision tools also supported producers as they evaluated herd size, culling decisions, and timing of market participation.
Market Conditions and Planning Ahead
Market conditions in 2025 highlighted the importance of forward-looking planning and risk price strategy management. Shifts in supply and demand, along with broader economic pressures, influenced price expectations across commodities. Market outlook information helped producers place current conditions in context as they prepared for upcoming production cycles and marketing decisions.
Looking Toward 2026
Thank you for being part of the Ag Economics on the Plains community throughout 2025! We look forward to continuing to support informed decision making in the year ahead.