Farmer income declines and U.S. government disaster payments begin; roughly $9.8 billion will be paid out

Approximately $9.8 billion will be paid out to farmers.
(FAPRI and RaFF map via Farm Journal)

As some U.S. farmers tally thousands of dollars in losses, the federal government has responded with disaster aid checks. "America has long provided subsidies to its farmers, dating back to the 1930s as a way to tackle rural poverty when a quarter of the population lived on farms," reports Patrick Thomas of The Wall Street Journal. "Today, subsidies largely come in the form of insurance. . . . Direct cash payments, while at times controversial, have been used to bolster farmers during agricultural downturns."

U.S. farmers have coped with declining profits and high input costs for the past two seasons. "Net farm income declined 4% this year to $141 billion after falling about 20% last year," Thomas explains. "Weaker prices for commodities such as soybeans and wheat have weighed on farmers’ earnings after growers in the U.S. and elsewhere reared big crops, swelling supplies. Their costs for essentials such as fertilizer and equipment are also higher."

Farm income woes will likely continue in 2025. Thomas reports, "Some of the world’s largest grain shippers and pesticide suppliers are girding for a shrinking farm economy by cutting costs or laying off workers. . . . [The] financial pain on the farm comes after one of the ag industry’s strongest runs on record. . . . In Iowa, the top corn-producing state, farmland values decreased by 3% this year, breaking a five-year streak of rising prices."

President-elect Donald Trump's pledged tariffs on Mexico and China may also hit farmers in the pocketbook. Both countries are "major importers of U.S. crops," Thomas writes. Still, many farmers "believe that Trump's policies may benefit the agricultural economy. . . . In 2018 and 2019, during Trump’s first term, about $23 billion in taxpayer money was paid to farmers to offset the impact of trade disruptions."

The current farm bill extension through Sept. 30 includes "$9.8 billion in market relief payments for 20 covered crops," reports Jim Wiesemeyer of Farm Journal. "According to an analysis by the Food and Agricultural Policy Research Institute, the top 10 states based on estimated total payments for corn, soybeans, wheat, cotton, sorghum, rice, barley, oats, and peanuts are:

• Texas: $963 million, primarily because of its status as the largest cotton producer
• Iowa: $846 million, with strong support for corn and soybean farmers
• Illinois: $790 million
• Kansas: $787 million
• Nebraska: $625 million
• Minnesota: $616 million
• North Dakota: $597 million
• South Dakota: $497 million
• Indiana: $400 million
• Missouri: $391 million

To get more details on the American Relief Act of 2025, click here. To see the state and crop breakdown and what it means for U.S. farmers, click here.