Tariffs and rising input costs add pressure to US farm economy
Farmers across the United States are facing another challenging harvest season, marked by falling crop prices, high production costs, and ongoing trade tensions. The Government is reportedly considering a $10–15 billion relief package to help producers offset losses tied to tariffs and disrupted export markets.
Soybean farmers have been particularly hard hit. China, which once purchased nearly half of US soybean exports, has cut back significantly due to trade disputes. Wisconsin farmer and Soybean Association Vice President Matt Rehberg said that while bailout programs offer short-term support, they fail to address long-term market instability. “We want markets. Markets are consistent. Bailouts help, but they’re like a Band-aid on a gunshot wound,” he said.
The National Corn Growers Association reports that nearly half of farmers fear a potential farm crisis. Corn prices have fallen to $4 per bushel from $7 in 2022, while input costs continue to rise — fertilizer by 37%, fuel by 32%, and labour by 47% since 2020.
According to the Federal Reserve Bank of Minneapolis, farm incomes declined across several northern states this year due to low crop prices and high costs. Although bankruptcies remain low, many farmers — particularly younger ones — are struggling to stay afloat.
Experts warn that new bailouts may not restore lost markets or lower costs. “Farmers can’t plan around political uncertainty,” said Jonathan Coppess of the University of Illinois. For many, this has become a bittersweet harvest: strong yields, but persistent financial pain.
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