Opinion: Congress needs to remember 'who they are working for.' A tractor ride with a farmer might help.

Allison Lynch

American farmers have been hard-pressed to be excited about heading out to the fields this spring: "Margins are tight. Profits are thin. Morale is low. It’s time for legislators to ride around in the tractor to remember who they’re working for," writes Allison Lynch in her opinion piece for Farm Progress.

Bob Bishop, a farmer from Leesburg, Ind., gave a candid answer when Lynch asked him about this year's planting season. He told her, "Input costs are driving this farm and agriculture in general. It’s tough right now, It’s tough. The expenses, the input costs, the machinery repairs, the property taxes — everything seems to be going higher, but our revenue generated from grain sales doesn’t seem to be keeping up.”

Still, there are solutions to many farming woes, but they aren't in farmers' hands. Lynch adds, "Industries have to shift, wars have to end, and global trade has to resume. … Hey, Congress. It’s your turn."

What about the soaring fertilizer costs? That started before the war with Iran. Lynch writes, "The Trump administration has recently started sniffing into fertilizer giants, pursuing an antitrust case. Hopefully, this can get the ball rolling on their end. We want to see results back here on the farm."

Many Americans may think that farmers are always getting handouts, but on the farm, that's not how it plays out. Lynch adds, "The farmers can’t win. They’re stuck between corporations that exploit their labor and a population that doesn’t understand them."

Farm is more than "crops and the land and politics," Lynch writes. "It’s about family and legacy." Legislators need to see that point of view. "Call yours. Offer them a ride. Give them the view from the tractor cab."

A USDA miscount of 4.5 million acres of corn is adding to a loss of trust among farmers in federal data

For profit-parched farmers, USDA data report errors can be costly. Farmers already face losses, and many fear they can no longer rely on USDA predictions. (Graph by Lori Hayes, Farm Journal)

After one of its worst corn-harvest predictions "in recent memory," the U.S. Department of Agriculture blamed a lack of farmer survey responses for its miscount. But the steep decline in the number of farmers who returned surveys points to farming communities that may no longer trust the USDA, reports Kevin Draper of The New York Times. "Corn estimates were off by 4.5 million acres last year. A lack of survey responses, not job cuts, led to the miss, the Agriculture Department said."

While a 5% undercount may not seem like much, it may have affected commodity purchases and farm incomes. Draper explains, "Estimates of crop size are some of the most closely read [USDA] reports." Traders use those reports to decide on commodity purchases, which influences the prices farmers receive for their crops. Farmers use the information to decide when to sell their crops for the best price.

But amid deep staffing cuts at the USDA, many farmers worry that its reports are no longer reliable. "The corn miss prompted Farm Journal, an agricultural publication, to ask respondents to its monthly survey whether they remained confident in department data," Draper writes. "Most of the farmers, ranchers and economists polled responded 'no.'"

Because farmers compete in commodity trading markets, the accuracy of USDA data helped them gain a leg up over traders who use sophisticated algorithms to manage their purchases. Shay Foulk, who farms 1,500 acres and runs a seed business near Peoria, Ill., told Draper, "People trade the reports whether the reports are true or not. . . .The farmer just feels they are at a disadvantage if those numbers are inaccurate."

Among the USDA sections where Department of Government Efficiency cut thousands of jobs, the "National Agricultural Statistics Service, which produces crop reports, was one of the hardest-hit divisions; it lost 34% of its staff," Draper reports. NASS used to employ roughly 800 employees. It now has about 500.

U.S. seeks backup fertilizer suppliers to reduce damage to American farmers facing soaring costs and shortages

Farmers apply fertilizers just before or during spring 
planting. (Photo by Brandon Griggs, Unsplash)

With many crop fertilizers and fertilizer materials trapped by Iran's stranglehold on the Strait of Hormuz, the Trump administration has sought out countries that can produce or supply backup fertilizers for American farmers facing soaring fertilizer costs as they ramp up for spring plantings, reports Skylar Woodhouse of Farm Progress. American farmers already face economic headwinds from slowed trade with China, high fertilizer and fuel prices, high labor costs, and farm worker shortages.

White House National Economic Council Director Kevin Hassett told reporters earlier this week that the Trump administration was looking for ways to minimize U.S. fertilizer shortages. "Hassett said the U.S. has 'established licenses for Venezuela to produce more fertilizer,' and has held discussions with Morocco," Woodhouse writes.

Reuters reported that roughly 30% of the world's nitrogen fertilizer supply would normally go through the Strait of Hormuz. Woodhouse reports, "One facility in Qatar had produced so much fertilizer that it supplied 'maybe about 20%' of the U.S. market, according to Hassett. The Iran conflict has mostly shut the key Strait of Hormuz passage for ships."

A March 13 letter from the American Soybean Association, the National Corn Growers Association, and other organizations asked fertilizer manufacturers Mosaic and Simplot to rescind their support for countervailing duties on phosphate fertilizer imports from Morocco and Russia, which contributed to spiking fertilizer costs even before the Iranian conflict.

As the war with Iran continues, farming fertilizer isn't the only pivotal import that relies on transport through the Middle East. Alexander Osipovich of The Wall Street Journal reports, "A protracted conflict with Iran could curtail exports of many inputs into the global supply chain. . . ranging from agriculture to chemicals and pharmaceuticals."

Osipovich includes a list from Barclays analysts on "some key non-energy products exported from nine Middle Eastern countries affected by the conflict." It's shared below.

62% of limestone flux, which is used in construction and is primarily sent to India
47% of sulfur, used for fertilizers and chemicals
28% of acyclic alcohols and derivatives, used as industrial chemicals and as fuel additives, and mostly exported to China
23% of polymers of ethylene, used in plastics manufacturing
23% of nitrogenous fertilizers, used in agriculture
20% of diamonds, with key processing hubs in Israel and the United Arab Emirates, though they are mined elsewhere
18% of unwrought aluminum

As energy and fertilizer prices climb, American farmers feel the impact of the county's conflict with Iran

Synthetic urea-based fertilizers are commonly used to provide nitrogen to U.S. crops. American farmers
worry that an extended war with Iran could make supplies scant. (Global Trade Tracker graph)

Whether it's citrus crops in Florida, corn in the American heartland or wheat grown in the Dakotas, U.S. farms, which are thousands of miles from the Straits of Hormuz, are already feeling strained by the U.S.-Israeli war with Iran. The length and intensity of the conflict will determine how deeply American farms and the businesses and consumers that rely on them will be affected. 

"Farmers are now feeling the impact in Iran with not only higher fertilizer prices, but the concern that farmers may not even be able to find enough fertilizer for spring," reports Tyne Morgan of Farm Journal. "As the situation unfolded over the past week, analysts say the reaction across commodity markets illustrated just how closely agriculture is tied to global energy and political dynamics."

The war has already led some U.S. farmers to shift the amount of corn they plan to grow. "Corn is far more fertilizer-intensive than soybeans, particularly when it comes to nitrogen," Morgan explains. "When fertilizer prices rise sharply, the relative profitability of soybeans often improves quickly." Most U.S. farmers use synthetic urea fertilizer or anhydrous ammonia to provide their crops with sufficient nitrogen for high-yield, healthy growth.

Beyond corn, wheat crop farmers generally use hefty amounts of urea-based fertilizer, so those farmers may change how many acres of spring wheat they decide to plant this April. Chip Nellinger, founder of Blue Reef Agri-Marketing, told Farm Journal, "There’s a lot of nitrogen that needs applied on U.S. wheat acres here over the coming three or four months ahead of us.”

U.S. farmers want to see the situation with Iran de-escalate and shipping lanes reopen. Morgan reports, "Much of the global focus right now remains on reopening critical energy shipping lanes and restoring stability to oil markets. . . . If that happens quickly, the agricultural ripple effects may prove temporary."

A 'Mafia' outfit centered on growing more American oats

Oats used by most American cereal brands are sourced from
Canada. (Graphic by Adam Dixon, Offrange)

Over the past several decades, the acres of oats American farmers have produced have dipped dramatically. The USDA doesn't heavily subsidize oat crops like it does corn and soybeans, and most oats used in the U.S. are sourced from Canada. However, a "growing group of more than 100 Midwestern farmers is trying to bring it back," reports Aimee Rawlins for Offrange.

Back in 2018, Martin Larsen, a fifth-generation farmer in Minnesota, looked at his crops and thought oats would be good for his soil, and the rising popularity of oat milk could help his bottom line, Rawlins writes.

Larsen convinced other Minnesota farmers to add oats to their rotation. The group struggled to find mills and break into the supply chain. Rawlings writes, "But Larsen and his fellow farmers weren’t deterred. Instead, they coined a name for their group: the Oat Mafia. They decided to create a supply chain — and, eventually, a mill — of their own."

Part of the reason Oat Mafia farmers have persisted is that oat crops do soil systems a world of good, including removing nitrogen that "might otherwise leach into groundwater," Rawlings explains. "And when added to a corn-soy rotation, oats help break pest cycles, reduce disease pressure, and curb resistant weeds." Oats also thrive during severe droughts.

The group's persistence has paid off. "Today, the Oat Mafia has around 125 farmers with 50,000 acres of tillable land and about 6,000 acres of oats, said Larsen, who started with just seven acres and now grows 500," Rawlings writes.

The group is investing in building their own mill to avoid milling entanglements, and Larsen is spending more time promoting oats to other farmers as a financially manageable addition to crop rotations. Rawlings reports, "He aims to be a resource for other farmers who aren’t sure where to start, offering advice on everything from what varieties to plant and how many oats per acre, to how much fertilizer to use and how to combine them."

Agriculture leaders warn of possible 'widespread collapse of American agriculture' without significant changes

Nearly half of all U.S. farms are not profitable.
(Photo by Matthew Putney, DTN)

A bipartisan group of agricultural leaders representing nearly all sectors of the industry sent a letter to congressional agriculture leaders outlining how current farmer distress is so extreme that, if left unaddressed, the country risks a "widespread collapse of American agriculture." 

The missive identifies the primary causes of the current farm crisis and urges Congress to begin passing its recommended corrective actions immediately.

"The group charged that Trump administration policies 'have caused tremendous harm to U.S. agriculture' and are having long-term negative effects on the competitiveness of farmers and agriculture," report Jerry Hagstrom and Chris Clayton of Progressive Farmer.

The letter points out the stark realities that many American farmers face today: "Farmer bankruptcies have doubled, barely half of all farms will be profitable this year, and the U.S. is running a historic agriculture trade deficit. These metrics reflect a sharp reversal from record farm export surpluses and farm incomes experienced just a few years ago."

The letter cites multiple factors causing the crisis:

• Increased farm input costs driven by tariffs on fertilizer, farm chemicals and machinery parts
• Loss of export markets due to trade wars and withdrawal from trade agreements like the Trans-Pacific Partnership
• Weakening of international trade partnerships as traditional allies turn to other suppliers
• Disruptions to agricultural labor supply affecting dairy, fruit and produce, and meat processing
• Massive cuts to USDA staffing and agricultural research funding
• Reductions in foreign aid and domestic food programs

The group asked Congress to immediately take nine specific actions to begin restoring stability for American farmers, including exempting all farm inputs from tariffs, passing legislation for E15 ethanol, passing Trade Promotion Authority, completing review of the U.S.-Mexico-Canada Agreement, and passing a new farm bill and farm labor reform.

A letter synopsis and a copy of the letter, including the names and positions of all 27 signatories, are found here. 

As the U.S. struggles to define its international trade policies, China and South America move forward together

A direct trade route from the Port of Chancay, Peru, to Shanghai, China, decreases 
transit time and lowers costs. (Investigate Midwest map)

Despite the financial boost China's purchase of 12 million tons of soybeans gave some U.S. farmers this year, the shift in Beijing's trading partners doesn't bode well for future U.S. crop sales. China has spent the past decade fostering global relationships outside of trade with the U.S., with a particular focus on South America.

China has invested in nearly two dozen seaports throughout Latin American, which create a "logistics network to support China's growing trade with the region," reports Mónica Cordero of Investigate Midwest. "These seaport investments range from multi-billion-dollar deep-water terminals to smaller upgrades that improve rail links, storage capacity, and ship turnaround times."

COSCO Shipping, a Chinese state-owned company, has been investing in Peru's Pacific-facing Port of Chancay. "The $3.54 billion project marks a major expansion of China’s Belt and Road Initiative into Latin America," Cordero writes. "From Chancay, the promise is that ships will reach China faster, a critical advantage for agricultural products."

Many experts point to the U.S.-China trade war that began in 2018, during President Donald Trump's first term, as the reason China began shunning American agriculture. Cordero explains, "But since returning to office, the president has renewed that strategy, and China’s investments signal a generational shift that may not reverse if and when the trade war subsides."

Without sales to China, American soybean farmers are in a particularly vulnerable position. Cordero reports, "Nationwide, more than 270,000 farms grow soybeans. . . . In Illinois, nearly half of all farms depend on soybean production, and in Iowa and Minnesota, about four in 10 do." 

"As China establishes new trade routes across Latin America, every new port or shipping lane makes a future recovery for U.S. farmers more challenging," Cordero writes. April Hemmes, an Iowa soybean farmer, told Cordero, "The only way that we become their top choice would be if our soybeans were far cheaper than South America’s.”

U.S. sugar farmers take a beating as price per ton tanks

A truck unloads sugar beets. (Red River Valley Sugarbeet 
Growers Association photo)

U.S. soybean and corn farmers aren't the only ones taking a beating in this year's agriculture market. Sugar beet farmers will also see abysmal payments for their record 2025 crop, report Jenny Schlecht and Kjersti Maday of AgWeek.

American Crystal Sugar announced it will pay farmers $43.85 per ton for its record 2025 crop, a "far cry from the $78 it paid last year or the $83.18 it paid for the 2023 crop," Schlecht writes.

The Minnesota-based sugar cooperative explained the lower prices, saying "net sugarbeet payments per ton for 2025 will be far less than payments in recent years due to low sugar prices blamed on sugar dumping by companies that heavily subsidize their sugar crops," AgWeek reports.

Sugar beets are white-rooted.
 (Merriam-Webster drawing)

Sugar beet growers, like other American farmers, have faced high input costs for labor, fertilizer and machinery. They are also grappling with less demand. Demand is down about 4% from a high several years ago, according to the article. Inflation, shifts in the American and even changes in SNAP allowances can all be contributors to less demand.

But Tom Astrup, the president and CEO of American Crystal Sugar, said price worries are the "greatest threat to the sugar industry since Mexican sugar dumping more than a decade ago," Schlecht explains. "The industry has been 'hammered' by the imports of world sugar, which Astrup said the Department of Agriculture has lost control of. That, he said, has led to the highest stocks of sugar in the U.S. in 25 years."

After a long wait by American farmers, China purchases U.S. soybeans for the first time since January

The loss of Chinese soybean sales over the summer 
caused U.S. soy prices to plummet. (Adobe Stock photo)

After months of giving American soybean farmers the cold shoulder, China purchased 14 cargoes of U.S. soybeans earlier this week. Karl Plume of Reuters reports, "It's the largest purchase since at least January and the most significant since a summit between President Donald Trump and President Xi Jinping in October." 

Although soybeans from South America are significantly cheaper, Beijing purchased U.S. beans to "meet the pledges it made to Washington at the trade summit in Busan, South Korea," Plume explains. "The White House said China had agreed to buy 12 million metric tons of U.S. soybeans this year." That's less than half of what China purchased -- roughly 27 million tons -- of U.S. soy in 2024.

 

The purchase marks a positive shift in U.S.-China trade relations, after a summer of tariff wars between the two countries, which led China to skip U.S. soybeans and instead purchase millions of tons of soy from Brazil and Argentina. 

 

The loss of Chinese soy purchases over the summer caused U.S. soy prices to tank, hurting American farmers already under stress from high costs and income insecurity. China bought nearly half of all U.S. soybeans in 2024.

 

Jim Sutter, chief executive officer of the U.S. Soybean Export Council, told Reuters, "It is good to see the hard work of our U.S. trade negotiators and their Chinese counterparts turning into business for U.S. soy farmers and exporters. We look forward to this continuing as trade lanes are restored." 

Any federal aid package is unlikely to reach American farmers in time for 2026 crop planning

Farmers plan out their next planting season during
the winter. (Adobe Stock photo)

Relief money for American farmers caught up in the Trump administration's recent trade disputes is likely to arrive too late to help them plan 2026 crops. "For months, farmers have pleaded for government aid to soften the blow of trade wars and another unprofitable harvest," reports Kevin Draper of The New York Times. "Most farmers and bankers have concluded that any aid will be too little and too late to rescue the next planting season."

The post-harvest season is when most farmers take stock of their finances and partner with their bankers to plan expenditures for the following year; however, high crop yields, low commodity prices, and few sales to China have caused some farmers to forgo any 2025 sales and store beans and grain. Other farmers have sold their crops at a loss. Both groups face the prospect of having to take on debt or use their cash reserves to fund their next planting season.

Even if the Department of Agriculture and the Trump administration work with speedy precision, it could "still take months before farmers receive any checks," Draper explains. "That would be well after the crucial winter [decision] period."

Stephen Vaden, the deputy secretary of agriculture, said on the “AgriTalk” radio show last month, "We may need to have a bridge to next year, but how many lanes that bridge has is going to be determined by what the market does between now and then."

Farmers are also waiting on new Farm Bill decisions. Draper adds, "It is also unclear if Congress will pass a new farm bill, which expired in 2023 and was extended a third time as part of the legislation to reopen the government."

China plans to purchase soybeans from this year's harvest and return its bean spending to previous levels

China plans to purchase U.S. soybeans from this year's 
harvest. (Adobe Stock photo)

After months of zero soybean sales to China, a trade deal announced between the U.S. and China will bring some relief to U.S. soybean farmers. 

"China has pledged to return its purchases of U.S. soybeans to regular levels in each of the next three years, according to Treasury Secretary Scott Bessent," reports Ben Berkowitz of Axios. Last year, China purchased roughly half of all U.S. soybeans, which totaled about $13 billion.

Despite China's purchase of soybeans from Argentina in September and October, Bessent's announcement included purchase details for this year's U.S. harvest. "Bessent said China pledged to buy 12 million metric tons of soybeans from U.S. farmers this season."

While the final terms of the agreement have not been disclosed, it appears that "China’s purchases of farm products will revert to what it imported before Trump retook office and initiated a new trade war," reports Alan Rappeport of The New York Times.

The sale of soybeans from this year's crop will bring some financial stability to farming families who were already operating on razor-thin margins due to high input costs and low commodity prices. Rappeport explains, "The loss of China as a buyer of soybeans and other American farm products raised fears in rural America that a 1980s-style farm crisis was looming and that many farms could go bankrupt."

On top of China's soybean purchase, Bessent said that "other countries in Southeast Asia had also agreed to buy an additional 19 million metric tons of American soybeans," Rapppeport writes. "He did not specify over what time frame those purchases would occur, but said that overall, President Trump had delivered for the farmers."

USDA will release $3 billion and reopen Farm Service Agency core services

Despite some bumper crops, American farmers have
had a tumultuous season. (Photo by Jed Owen, Unspash)

U.S. farmers are harvesting big crops, but many are reaping little or no profit. To address some of their economic strife, the Department of Agriculture is "planning to release more than $3 billion in aid to U.S. farmers that had been frozen as a result of the government shutdown," report Natalie Andrews and Patrick Thomas of The Wall Street Journal.

Bumper crops should be a boon for American farmers, but instead they are "fueling a glut that is driving down prices. Rising costs for fertilizer and farm equipment are also squeezing their balance sheets," Andrews and Thomas explain.

In addition to cash assistance, the USDA will "resume Farm Service Agency core operations, which have been closed for three weeks during the government shutdown," Andrews and Thomas write. "This will allow farmers to access aid, including some safety-net programs." 

President Donald Trump considered using tariff revenue to fund a bailout package for farmers earlier this year; however, the $3 billion comes from the Commodity Credit Corp., the same fund Trump tapped to help farmers weather his first-term tariffs. 

Before the government closed, the Trump administration was considering another $10 billion for farmers "struggling because of Trump’s trade war, but that new relief is on hold while the government is shut down," the Journal reports.

President Trump will be in Asia next week, where he "plans to push Chinese leader Xi Jinping to buy U.S. soybeans to help struggling American farmers," Andrews adds. "The two leaders are scheduled to meet on the sidelines of a summit in South Korea."

Opinion: American farmers grow the nation's food but can end up with little to show for it

High input costs are driving some farmers to the 'breaking point.'
(Photo by Beth Haynes via Farm Progress)

U.S. farmers not only provide food for the entire nation but also generate jobs and incomes across multiple industries. Despite their outsized contributions, many American farmers aren't making any money, writes Holly Spangler in her opinion for Farm Progress. While many farmers consider the current system "broken," there are solutions.

Jason Webster, who farms his own land and manages the Precision Technology Institute Farm at Pontiac, Ill., told Spangler, "We’ve got this pie of revenue when we harvest this crop. And there’s all these people that want their little chunk of it. . . . In the end, you just hope there’s a little sliver left over for the farmer. Right now? There’s no sliver. The whole system’s broke.”

A new report from agriculture economists Gary Schnikey and Nick Paulson at the University of Illinois, documents a 20% increase in farm equipment costs from 2021 to 2023. Spangler adds, "Before that, prices increased just 14% over nine years, from 2011 to 2020."

Some farmers are "being driven to the breaking point," Spangler writes. "Many are angry at large equipment corporations and, in some cases, at dealerships, which just keep consolidating, reducing competition."

Farmers like Beth Dorsey, Edwardsville, Ill., say the "cost of inputs and the lack of enforcing antitrust laws — for decades — have crippled agriculture," Spangler writes. 

To help farmers, the "government [needs] to pursue violations of antitrust laws and enforce the Packers and Stockyards Act, which was established in 1921 in response to the concentrated meatpacker market and gave more regulatory powers to the federal government," Spangler explains. "According to data collected by Farm Aid, the top four companies in each industry hold significant portions."

Partisan politics -- no matter which way farmers have voted -- have harmed farmers who need a full Farm Bill debated and passed. Spangler writes, "We need to have a real conversation about what’s important in agriculture and U.S. food production."

U.S. soybean farmers panic over lack of sales to China

Some U.S. soybean farmers will store, instead of sell,
this year's crop. (Photo by Mark Serafino, Unsplash)

U.S. farmers haven’t sold beans to China, and soybean growers are sounding the alarm. "American soybean farmers are in panic mode as they harvest what is expected to be a bumper crop," reports Patrick Thomas of The Wall Street Journal. "China accounted for more than half of the $24.5 billion of American soybean exports last year."

By snubbing American soybeans and purchasing South American-grown beans instead, China is once again using U.S. farmer strife as a way to punish the Trump administration's trade wars. Thomas adds, "From January through August of this year, Chinese buyers purchased just over 200 million bushels of U.S. soybeans, compared with almost 1 billion bushels over the same period last year."

Even before China opted not to purchase U.S. soybeans, American farmers were already struggling with high costs for equipment, labor and fertilizer. "Congress in December passed a $10 billion bailout for farmers," Thomas wrote. "President Trump said on Monday that he was 'going to do some farm stuff this week' to help growers cope with the loss of exports to China."

Meanwhile, some soybean growers are choosing to store their harvested crops for now. Iowa soybean grower Morey Hill told Thomas, “There’s no incentive to sell right now." Hill predicted that without sales to China, the soybean market could likely turn into a "blood bath."

Instead of waiting on China, Hill has been traveling to countries such as Cambodia and Morocco, working to educate farmers on the benefits of using U.S. soybeans in their fish and animal feed, which is what China does with the majority of its soybeans.

The European Union, Mexico, Vietnam, Egypt and Bangladesh also purchase U.S. soybeans, but those sales, even when combined, aren't enough.

Opinion: Annual harvests in Ohio turned into a 'mess' by trade wars, low prices and sky-high input costs

China hasn't purchased a single soybean from
the U.S. in 2025. (Adobe Stock photo)

 

Despite better weather and decent crop production, many American farmers face extreme financial distress due to tariffs, sinking commodity prices and the lack of trade with China. 

For row crop farmers in Ohio, the tariffs and expenses have turned their annual harvest time into a "mess" riddled with financial loss and insecurity, writes Marilou Johanek in her opinion for the Ohio Capital Journal.

"Some growers have called the fallout from President Donald Trump's chaotic trade war, and the reciprocal tariffs it provoked, a 'farmageddon' that could ruin what made rural America great," Johanek explains.

While some U.S. farmers were not surprised that China's response to American tariffs was to snub U.S. soybeans, the pain is being felt by farmers nationwide, including those who don't trade with China. Johanek explains, "Farmers felt the same creeping despair with the tariff debacle of 2018 when Trump first slapped punitive tariffs on crucial exporters of American crops."

Ohio farmer Chris Gibbs, who left the GOP after 2018 tariffs caused China to increase its farming trade with South America, told Johanek, "We’re back in the same situation, but only worse. In the major commodities, corn, wheat, soybeans, sorghum, rice, cotton, prices are below the cost of production, so there’s built-in loss."

Beyond too few trading partners, farmers face soaring input costs. Johanek writes, "Senseless tariffs on fertilizer, steel, aluminum, and lumber just sent the cost of doing business through the roof. . . . Trump tariffs are especially painful for family farms that make up about 87% of all farms in Ohio."

Farmers and the agricultural industry impact job and business sectors throughout the U.S. and contribute roughly $9.5 trillion, or nearly 20%, to the national economy.

Trump announces plan to use tariff dollars to fund U.S. farmer bailout checks

Many U.S. farmers are harvesting crops that don't 
have a buyer. (Adobe Stock photo)

President Donald Trump announced plans to use tariff dollars to help U.S. farmers facing extreme economic strain due to high input costs and poor trade opportunities. Grace Yarrow and Meridith Lee Hill of Politico report, "Trump said he will use tariff revenue to offer cash bailouts for farmers who are struggling with trade uncertainty and other economic headwinds."

Trump told reporters, "We’re going to take some of that tariff money that we made, we’re going to give it to our farmers, who are, for a little while, going to be hurt until the tariffs kick into their benefit. . . .So we’re going to make sure that our farmers are in great shape, because we’re taking in a lot of money.”

Some Republicans share Trump's preference for tapping tariff dollars to help farmers, but other GOP lawmakers worry the plan "could run into roadblocks if the Supreme Court decides Trump’s tariffs are not legal," Politico reports. Several Republicans also cite what Democrats might ask for in return for agreeing to use tariff dollars to fund farmer checks.

While the Trump administration has promised to deliver better trade deals, American farmers are still waiting. Meanwhile, lobbyists and lawmakers from farming districts are pushing hard for a farm aid package to be passed soon. 

American farmers worried about lack of soybean sales to China; trade war could wipe out a 'generation of farmers'

China usually buys 51% of U.S. soybeans every year.
(Unsplash photo)

A North Dakota soybean farm is expected to lose $400,000 this year due to China’s boycott of American soybeans because of tariffs President Trump placed on Chinese goods, Alan Rapperport of The New York Times reported.

That farm is just one of many being hurt by the tariffs and trade wars. “Are we going to lose a generation of farmers because of the trade war? I think that’s what we’re fast approaching,” Justin Sherlock, a farmer and president of the North Dakota Soybean Growers Association said in an interview with Rapperport. 

China has used its status as a major consumer of American agricultural products since Trump’s first term to strategically pressure the administration toward more favorable trade deals. This year soybean farmers have taken a major hit, but China has also scaled back purchases of other products as well.

The Department of Agriculture (USDA) has considered rolling out aid for farmers impacted by China’s pushback against tariffs.

“Farmers tend to live in Republican states that voted for Mr. Trump, so harming them economically threatened a core constituency,” Rapperport wrote. In other words, the livelihoods of American farmers have become bargaining chips in the U.S.-China trade war.

Farmers in North Dakota are increasingly worried that a deal will not be made in time for the nearing soybean harvest season. And for an industry that is already struggling to stay afloat, that could mean more farm closures.

Quick hits: Radioactive shrimp; soybean farmers seek deal; tractor pulls; veggie-flation; 515-mile lightning strike

Radioactive shrimp were recalled as a precautionary
measure. (ABC video graphic)

Earlier this week, the FDA issued an urgent recall for Indonesian shrimp sold at Walmart that may contain radioactive materials. "Certain Great Value raw frozen shrimp products sold at Walmart are being recalled due to possible contamination with Cesium-137, a radioactive isotope," reports Erin Keller of the Independent. FDA shrimp recall details are here.

With their fall harvests almost ready, American soybean farmers sent the Trump administration a letter asking for a trade deal with China. "China, the world's largest soybean buyer, is turning to Brazilian cargoes amid trade tensions with the U.S. and ongoing negotiations," reports Leah Douglas of Reuters. "The country has not pre-purchased soybeans from the upcoming U.S. harvest, an unusual delay that has worried traders and farmers. . . . China bought 54% of U.S. soybean exports in the 2023-2024 marketing year, worth $13.2 billion."

Langford's tractor pull has increased in popularity since
beginning in 1946. (Photo by Zach Jaworski, NPR)

Annual tractor and truck pulls have grown into major events for some rural communities. Little Langford, New York, hosts its tractor pull for two days every August. "Spectators gather on wooden bleachers flanking a long dirt runway, forming an arena that seats 4,000 people — more than the surrounding area's total population," reports Zach Jaworski of NPR. Richard Love, one of the officials at this year's Langford pull, told Jaworski, "It's non-stop action and it's just kind of a big party here." Jaworski adds, "This event in Langford has been held annually since 1946."

After U.S. Department of Labor agents zeroed in on the Marino family farm in New Jersey and uncovered a paperwork violation, they shackled the family's business with administrative red tape, fines and a ruling from a DOL court. Finally, after years of litigation, "a panel of independent federal judges unanimously ruled DOL’s actions in violation of the Constitution. . . and the Marinos were vindicated," reports Chris Bennett of Farm Journal. But the DOL's damage remains -- the Marino family farm that operated for 125 years is gone. Joe Marino told Bennett, "I never thought honesty and facts wouldn’t matter in America, but that’s what happened."

Chart by Axios, from Bureau of Labor data

As U.S. consumers watch the prices for essentials continue to fluctuate, produce costs could become the next budget worry. "Wholesale prices for fresh veggies soared by a record amount last month, foreshadowing a possible spike at the grocery store soon," reports Ben Berkowitz of Axios. "The Producer Price Index for July rose at the fastest clip in three years, far more than economists expected. . . . Per Bureau of Labor Statistics data, it's also the largest monthly increase ever recorded in a summer month (June-August), in figures that go back to 1947." 

A visualization of the megaflash that extended 515 miles, roughly the distance from Dallas to Kansas City, Mo. (Photo by Michael Peterson, GTRI via The Wall Street Journal)

The raw energy released in an average lightning bolt could power a small town for an entire day. With that in mind, consider the energy released during a recently detected lightning flash that zipped along the Great Plains in 2017. It was a "record-setting strike that lasted more than seven seconds and stretched 515 miles, from eastern Texas almost to Kansas City, Mo.," reports Eric Niiler of The Wall Street Journal. "The massive size of the megaflash, which touched ground in five states in 2017, was revealed by a new analysis of satellite imagery from the National Oceanic and Atmospheric Administration. . . . The average lightning strike is between 2 and 10 miles long."

Mega merger would create first coast-to-coast rail company in U.S.; farming and manufacturing sectors voice concerns

Union Pacific and Norfolk Southern railroads signed an 
agreement to merge. (Photo by Tyler Silvest, DTN CC)

Union Pacific has announced plans to merge with its smaller rival, Norfolk Southern. The $85 billion merger would create the nation's first transcontinental railroad while giving Union Pacific the power "to reshape the movement of goods from grains to autos across the country," report Sabrina Valle, Shivansh Tiwary and David French for Reuters. "If approved, the deal would be the largest ever buyout in the sector."

The mega deal, which would connect 50,000 miles of track across 43 states, "will face lengthy regulatory scrutiny amid union concerns over potential rate increases, service disruptions and job losses," Reuters reports. "The 1996 merger of Union Pacific and Southern Pacific had temporarily led to severe congestion and delays across the Southwest."

Particularly at harvest time, railroad changes, costs, delays and timing can directly impact farming incomes. The National Grain and Feed Association said in a news release "that it will undertake an extensive evaluation of the proposed merger to better understand its implications for our industry," reports Mary Kennedy for Progressive Farmer.

The American Chemistry Council weighed in and cautioned against further rail mergers. ACC leadership told Kennedy, "The impact of a transcontinental merger between two of these railroads threatens to leave American manufacturers, farmers and energy producers with even fewer competitive options to ship by rail. . . . Many rail customers are currently dealing with high rates and unreliable service. Further consolidation within the rail industry is likely to make these problems worse."

The proposed merger "reflects a shift in antitrust enforcement under U.S. President Donald Trump's administration," Reuters reports. "Executive orders aimed at removing barriers to consolidation have opened the door to mergers that were previously considered unlikely. . . .The Union Pacific merger would give the company a 43% market share, dominating most categories of commodities."

Coca-Cola sweetened with cane sugar could be more expensive; corn farmers worry they'll be hurt by the changes

Soft drink companies use high-fructose corn syrup to
reduce production costs. (Photo by J. Yarema, Unsplash)

If Coca-Cola wants to eliminate high-fructose corn syrup in Coke and replace it with cane sugar, it will need to find cane sugar suppliers outside the U.S. because the country already faces a cane sugar shortage. Since cane sugar is more costly than high-fructose corn syrup, the switch would increase the cost of Coke while simultaneously hurting U.S. corn farmers.

"Each year, America consumes about 12.5 million tons of sugar, but produces only 4 million tons of cane sugar. The rest is made up by imports and sugar sourced from sugar beets," report Patrick Thomas and Laura Cooper for The Wall Street Journal. "The beverage industry relies heavily on high-fructose corn syrup as its sweetener of choice. Each year, more than 7 million tons are produced by mills that grind up corn to make sweeteners and other products."

Due to U.S. sugar production limits, if Coca-Cola shifts to cane sugar on a broader scale, it will have to import sugar "from countries such as Brazil and Mexico — countries that face Trump administration tariffs of 50% and 30%, respectively, on Aug. 1," the Journal reports.

Although the soda giant has agreed to produce some American Coke with cane sugar, the switch will increase its expenses. Ron Sterk, a senior editor at SOSland Publishing, an information provider for the ingredients industry in the U.S., told Reuters, "Food and beverage industries started to use corn syrup in the U.S. in the past because of costs. It is cheaper than sugar."

U.S. corn farmers rely on domestic corn syrup production to drive grain market prices. Reuters reports, "The Corn Refiners Association said the complete elimination of high fructose corn syrup from the U.S. food and beverage supply would cut corn prices by up to $.34 a bushel, resulting in a loss of $5.1 billion in farm revenue."