WA farm groups send letter to state leaders over dramatic drop in ag profitability

(The Center Square) – Several farming groups, including Whatcom County-based Save Family Farming, have sent a letter to Washington state leaders regarding recent data indicating the state ranks last in farmer take-home pay for 2024.

According to the USDA Economic Research Service’s farm income and wealth statistics report, in 2024, returns for Washington farm operators totaled $295 million in the red, ranking the state last in the nation for financial returns for operators. The state’s gross farm receipts totaled $13.8 billion, while expenses totaled $14.1 billion.

The letter, signed onto by 17 other state agricultural organizations, notes the industry faces a difficult economic climate, with many operators struggling to break even.

According to the letter to Gov. Bob Ferguson and state legislative leaders, Washington farmers report that the Climate Commitment Act – a comprehensive cap-and-trade program designed to reduce greenhouse gas emissions by 95% by 2050 – has negatively impacted the agricultural industry, primarily through heavy fuel surcharges on gasoline and diesel.

The letter notes that Washington farmers are facing high labor costs in the form of recent labor policies, particularly the phase-in of mandatory overtime pay after 40 hours, which took full effect in 2024, as well as the unpredictability of trade rules.

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Washington farmers face severe uncertainty due to renewed trade tensions and tariffs under the Trump administration, which threaten key export markets for commodities like wheat, cherries and dairy.

“The disappearance of vital agricultural and food processing facilities across Washington state points back to the crippling costs of growing food and doing business here,” Save Family Farming President Markus Rollinger said in a news release announcing the letter. “Energy bills, labor costs, and many other regulatory compliance burdens are choking out both our state’s legacy family farming community and the critical infrastructure and businesses that support it.

“It is time for Washington’s leaders to wake up, face the devastating consequences of their inaction, and take bold steps now or be remembered as the ones who let Washington agriculture continue to disappear on their watch.”

While the problem is especially acute in Washington, lack of profitability is a national challenge.

The 2026 outlook by the USDA and American Farm Bureau Federation describes the U.S. farm economy as being in a “generational downturn.” Net farm income is projected to slip lower in 2026, remaining $48 billion below 2022 records.

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