![Mature Soybeans S. Bauer USDA ARS]()
Although Tennessee producers planted 14.7 percent more soybeans in 2024 than the previous year (1.8 million acres as compared to 1.57 million acres), prices paid to producers fell by 16 percent compared to 2023. Image of mature soybeans before harvest. Soybeans and other commodity crops were affected throughout Tennessee by drought and flood. S. Bauer/USDA ARS.
Poor production, low commodity prices mean difficult times for many in state agriculture sectors
Patricia McDaniels is senior media relations coordinator and editor at the University of Tennessee Institute of Agriculture.
KNOXVILLE — In 2024, Tennessee’s agricultural and forestry industrial complex was significantly impacted by six major factors: drought, agricultural land loss, trade deficits, decreasing foreign market demand, below average yields and relatively lower prices for major commodities.
Researchers and Extension specialists from the University of Tennessee Institute of Agriculture Department of Agricultural and Resource Economics also suggest that the outlook for 2025 could vary depending on the sector.
In the annual economic report to the governor of Tennessee prepared by the Boyd Center for Business and Economic Research at the UT Haslam College of Business, the agricultural and resource economists provide an economic outlook for the state’s farmers and foresters.
“The state’s agricultural and forestry industries directly and indirectly contributed $103 billion to the Tennessee economy,” says Andrew Muhammad, UTIA professor of agricultural economics.
“2024 was a struggle for many of our producers and sectors. Next year could also be difficult, with trade policy uncertainty, low crop prices, drought- and hurricane-reduced feed supplies and high input costs.” Muhammad is a co-author of the report and holds the Blasingame Chair of Excellence in Agricultural Policy.
In terms of gross output, the agricultural and forestry industrial complex measured 11 percent of the economic activity conducted in Tennessee in 2024. An estimated 385,743 individuals worked in industries supported by the complex, which is 8.8 percent of the state’s total employment.
“Due to the dramatic declines in gross revenue in 2024, many crop producers will struggle with obtaining financing for the 2025 crop, which could affect production and result in consolidation in the row crop sector in Tennessee,” Muhammad and his co-authors write in the report. They add that negative factors affecting the livestock, poultry and dairy industries in 2025 will be continued high interest rates when financing operations and equipment, as well as inflation and reduced discretionary spending available to consumers.
Although Tennessee producers planted 14.7 percent more soybeans in 2024 than the previous year (1.8 million acres as compared to 1.57 million acres), prices paid to producers fell by 16 percent compared to 2023. Image of mature soybeans before harvest. Soybeans and other commodity crops were affected throughout Tennessee by drought and flood. S. Bauer/USDA ARS.