Specialty crop producers in the United States continue to face pressure as production costs outpace market returns in 2025. The sector, which includes more than 350 fruit and vegetable commodities, contributes over US$75 billion in farm-gate value but operates with limited risk-management tools compared to field crops. Rising input costs, labor dependency, and limited price transparency are straining profitability across many operations.
Production challenges vary across crops. Strawberry growers face some of the highest per-acre expenses in agriculture, with costs estimated at about US$113,000 per acre and projected losses of more than US$14,000 per acre at typical yields. Citrus growers report long-term cost escalation, including regulatory compliance and disease-related pressures, while prices have remained stagnant. Romaine lettuce prices have declined to US$14.55 per carton in 2025, nearly half of 2024 levels, while per-acre production costs are around US$17,000.
Rising input expenses continue to weigh on margins. Between 2020 and 2025, pesticide costs rose 25 per cent, fuel costs 31 per cent, fertilizer costs 37 per cent, and labor costs nearly 50 per cent. Specialty operations, which rely heavily on manual labor and crop-specific technology, cannot easily offset rising expenses through mechanization. USDA data show specialty crop farms averaged more than US$466,000 per farm in cash expenses in 2023, up 47 per cent from 2021.
Risk-management gaps also persist. Federal Crop Insurance Program coverage is limited across fruit and vegetable crops, with about 47 per cent of vegetable and melon acreage lacking FCIP or NAP protection. Specialty crops do not qualify for major Title I safety-net programs, and existing insurance options often provide only yield-based coverage with limited revenue protection. Many growers rely on ad hoc disaster aid, where payments can be delayed due to limited standardized data for specialty crops. In 2024, specialty growers represented nearly 20 per cent of documented crop losses yet received only 8 per cent of SDRP payments.
Exports add another challenge, as global buyers seek lower-cost supply, increasing pressure on high-cost U.S. production. Weather-related impacts and region-specific pest pressures continue to influence short-term profitability.
Policymakers have introduced some updates, including increased premium support and expanded access to supplemental coverage under recent legislation. However, improvements tailored to specialty crops remain limited, and growers continue to call for a more responsive safety net that reflects crop diversity, labor needs, and perishable markets.
Source: Ag Alert
