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Farmers Challenged by Persistent ‘Cost-Price Squeeze’ Dynamics

By Gordon Arbuckle Jr.

The 2025 Iowa Farm and Rural Life Poll, conducted by Iowa State University Extension and Outreach Sociology, highlights ongoing economic and policy challenges faced by Iowa’s farmers. The annual survey, which gathered responses from nearly 950 farmers statewide, provides insights into farmers’ perspectives on the ups and downs of specialized commodity production.

“Prices of agricultural commodities such as corn and soybeans are highly volatile, and while the costs of inputs such as seeds and fertilizer tend to rise when prices are high, they are slow to decline when crop prices drop,” said J. Arbuckle, director of the farm poll, extension sociologist and Henry A. Wallace Chair for Sustainable Agriculture at Iowa State University. “This puts farmers in a stressful ‘cost-price squeeze’ situation. This year’s survey examined farmers’ feelings about that and related dynamics.”

Key Findings from the Survey Include:

Rising input costs and profit margins. Nearly all farmers agreed or strongly agreed that the cost of inputs — such as seeds and chemicals — seems to rise faster when profit margins are higher. Additionally, 88% agreed that profit margins on corn and soybeans are eroded by land rents and input costs more quickly than in the past, underscoring persistent financial pressures in row crop production.

Economic uncertainty and risk. The survey found that 85% of farmers agreed or strongly agreed that the boom-bust cycles of commodity production are hard on farmers, and 69% sometimes feel they have little control over farm profitability. Additionally, 67% agreed that heavy reliance on corn and soybeans contributes to financial risk, while 60% reported feeling overly dependent on purchased inputs.

Source : iastate.edu

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The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.