The Challenge of Agricultural Viability in Washington
Washington is widely recognized as one of the nation’s most productive agricultural states. We are a local food haven, second only to California in the diversity of crops grown! From apples and cherries to hops and potatoes, the state consistently ranks among the top producers of many specialty crops, generating more than $10 billion annually in agricultural value annually spanning across its 32,000 farms (94% family-owned). Agriculture makes up 10-13% of the state’s annual gross domestic product (GDP), and our farmers and ranchers manage nearly 7.7 million acres of the state's lands. Yet behind those impressive production numbers, many farmers say the economics of agriculture in Washington are becoming increasingly unsustainable.
Recent data paint a troubling picture. According to the U.S. Department of Agriculture’s Census of Agriculture, Washington lost more than 3,700 farms between 2017 and 2022—an average of more than two farms disappearing every day. The decline reflects mounting financial pressures on growers, particularly family farms that operate on thin margins and depend on stable markets and affordable production costs.
The financial outlook has become even more concerning. In 2024, Washington ranked last in the nation for returns to farm operators, with overall returns estimated at negative $295 million. While farmers in other major agricultural states saw billions in positive returns, Washington growers collectively spent more on inputs and operations than they earned. Analysts point to a strong U.S. dollar, which reduces export competitiveness, as one contributing factor. But our export dependence is only one contributing factor.
Rising costs are another major driver. The increase in labor, fuel, fertilizer, and regulatory compliance expenses have all increased sharply in recent years, especially in our state. In fact, labor costs alone have been reported far above national averages in Washington, reflecting both higher wages and regulatory requirements. For farmers producing globally traded crops, those higher costs can be difficult to recover in the marketplace. For example, in 1986, the Chicago Board of Trade (CBOT) wheat futures were roughly $2.40-$2.60 per bushel. Adjusting for inflation, today that would be $7.00-$7.50 per bushel. As of March 4, 2026, Chicago wheat futures were listed at roughly $5.69-$5.90 per bushel.
Another way to think of it is to compare fuel prices. In 1986, wheat prices were at $2.50 per bushel and diesel was about $1 per gallon. Today wheat prices are $5.70 per bushel and diesel is $4-5 per gallon. Wheat prices have not kept pace with input inflation, which is part of why many grain growers argue margins are tighter today despite higher nominal prices. A Washington wheat farmer today may harvest 60–70 bushels per acre, compared to ~40 bushels in the 1980s, but their real profit per acre is often similar or lower. Today, our farmers produce higher yields at higher costs, and profit margins suffer.
Wheat farmers are not alone in this struggle. Potato fields, apple orchards, grape vineyards and others are feeling the impact. Many growers say these pressures are creating a cycle that threatens the long-term viability of farming across crops. When production costs rise faster than commodity prices, farmers often take on additional debt or defer investments in equipment and infrastructure. Over time, those financial strains can push farms to consolidate, sell land, or shut down entirely. The result is fewer farms, fewer opportunities for the next generation, and a gradual loss of agricultural capacity.
The stress is not only economic. It is personal. Studies and reports tied to the agricultural sector in Washington have highlighted growing mental-health concerns among farmers, driven largely by financial uncertainty, unpredictable weather, and the responsibility of maintaining multigenerational operations.
Despite the challenges, many industry leaders believe solutions are possible. Policies that improve labor availability, support export competitiveness, reduce regulatory burdens, and stabilize production costs could help improve profitability and keep farms in operation. Investments in infrastructure, research, and workforce development may also strengthen the long-term outlook for the industry.
Washington agriculture remains a cornerstone of the state’s economy and rural communities. But the loss of thousands of farms and declining farm income highlight an urgent reality: the loss of locally grown food can happen here. Ensuring agricultural viability will require coordinated efforts from policymakers, industry leaders, and communities alike. Without those efforts, the state risks losing not only farms, but also the locally grown food we all appreciate with our agricultural heritage and economic vitality.