U.S. Farm Economy Faces Mounting Crisis Amid Rising Costs and Trade Disruptions
A combination of low crop prices, increasing production costs, and ongoing trade disputes is creating significant financial strain for American farmers, with many fearing a full-blown crisis.
John Delmotte, a farmer in Monroe County, Michigan, who grows corn, soybeans, and wheat on 1,200 acres, expressed deep concern about the future of his business. “I am probably as uneasy as I’ve ever been in my career,” Delmotte said. “There’s just a sense of feeling unsure about things.” A recent survey by the National Corn Growers Association (NCGA) revealed that 80% of corn farmers believe the U.S. farm economy is already in crisis or on the verge of one. The situation highlights the vulnerability of the agricultural sector to global market forces and policy decisions.
Farmers are grappling with a 37% increase in fertilizer costs, a 32% rise in fuel and oil expenses, and a 71% jump in interest rates between 2020 and 2025, according to the USDA Economic Research Service. These escalating costs are compounded by the lingering effects of the Trump administration’s trade dispute with China, which significantly reduced U.S. farm exports, particularly soybeans. Loren Koeman, lead economist for the Michigan Farm Bureau, noted the widespread impact: “If you talk about corn, soybeans, wheat… it’s a really tough time for them.” Some farmers are delaying purchases of equipment and fertilizer, hoping for market improvements, while others are exploring alternative crops. The NCGA is urging Congress to pass the Nationwide Consumer and Fuel Retailer Choice Act of 2025, which would allow year-round sales of E15 gasoline, potentially boosting demand for corn. You can learn more about the challenges facing farmers at the USDA Economic Research Service.
The crisis isn’t uniform across agriculture; livestock producers and specialty crop farmers are faring better. However, producers of major field crops are facing the toughest conditions, as increased efficiency has led to oversupply and lower prices. As Bob Thompson, president of the Michigan Farmers Union, stated, “The cost goes up to operate, the value of the product goes down and we’re caught in the middle.” Officials say further government support may be necessary to prevent widespread farm closures.
