Arkansas crop cash receipts Plunge 17.4%, UA report finds

Crop cash receipts across Arkansas have plunged 17.4% compared to last year, driving a severe financial squeeze for the state’s agricultural producers, according to the newly published Arkansas Agriculture profile from the University of Arkansas Division of Agriculture.

Despite remaining the state’s top economic sector at more than $20 billion annually, nearly 25% of Arkansas farms have shuttered over the last 18 months. Row crop farms have absorbed the heaviest losses, squeezed by soaring input costs stemming from international conflicts involving the United States, Iran, Russia, and Ukraine. Persistent drought, shifting global soybean and rice production, commodity price drops, and federal trade tariffs have further eroded profit margins.

Rice and Livestock Receipts Rise as Crop Values Drop

The downturn has hit specific crops with varying severity. Soybean receipts dropped 29.8%, cotton lint fell 40.6%, and corn receipts decreased 17.3%. Rice proved to be a notable exception, climbing 6.5%. Meanwhile, receipts from animals and animal products rose 1.2%, softening the blow for livestock producers even as crop operations struggled.

“What stands out to me the most is the volatility we’ve seen in agriculture over the last few years,” said Frank Seo, assistant professor of rural development for the Division of Agriculture and co-author of the profile. “In the 2024 Pocket Facts, inflation-adjusted cash farm receipts increased 26.3% between 2021 and 2022. In the latest data, crop cash receipts alone declined 17.4%.”

Seo authored the publication alongside Luke Pullo, a community, professional, and economic development program associate with the Division of Agriculture. The report highlights a broader “New Farm Crisis” defined by a 30% drop in commodity prices since 2022 against input costs sitting roughly 20% higher than pre-invasion levels in Ukraine. Consequently, production expenses outpaced total cash income for three consecutive years from 2023 to 2025.

The Risk Ahead for Rural Economies

For rural communities dependent on farm revenue, the instability stretches far beyond the farm gate. Elevated production expenses mean that high harvest yields no longer guarantee profitability, leaving many farm families to manage consecutive years of negative cash flow.