The Mississippi Department of Agriculture and Commerce reports a drop of 20 farms in recent months from 370 to 350.
The blame for the decline has been placed on rising feed costs, which are forcing independent farmers out of business.
"We will not make money in 2008. I just don't see any scenario that will allow us to be profitable in 2008," Chat Phillips, a longtime catfish farmer, told WJTV.
Mr Phillips said that no matter how much he harvests, it is not going to pay off.
"Until something changes in our cost-price relationship between our feed and product, there's just no profitability in the industry," Mr Phillips said.
Mississippi Catfish Industry Faces Difficulties
US - The number of catfish farms in Mississippi is falling, as fish farmers find it hard to make ends meet.