In brief
Farmers in the Midwest, particularly those growing soybeans, are grappling with soaring input costs and persistently low market prices. Rising inflation, the impact of tariffs imposed during the trade war with China, and disruptions due to the ongoing conflict in Iran are all contributing factors to the challenging environment. Doug Bartek, a fifth-generation farmer in Nebraska, expresses deep concerns about the sustainability of farming as economic pressures mount, leading to increased anxiety about the future of farming in the region.
WAHOO, Neb. (AP) — Strong winds whipped around Doug Bartek, a fifth-generation farmer, as he headed into a grain bin to shovel soybeans onto a conveyor chute. The 60-year-old was anxious at the onset of the spring planting season, rattling off the long list of issues affecting his family’s livelihood at their 2,000-acre farm near Wahoo, Nebraska.
The high cost of fuel, equipment, and fertilizer — compounded by the Iran war — and also tariffs, perceived 'price gouging' by suppliers, and low soybean prices driven by a global supply glut. All of it weighs on Bartek, who is chairman of the Nebraska Soybean Association.
“Our biggest struggles are our inputs, be it fertilizer, seed, chemical, parts,” Bartek said. “There has been so much drastic markup in all of these. And I just kind of feel like the farmer’s kind of painted in the corner.”
Bartek’s concerns are shared by many Midwest soybean producers. Costs, such as equipment, have crept up over time while soybean prices have stayed low. Tariffs levied by the Trump administration last year and the resulting monthslong trade war with China only made things worse, they say. Then the Iran war bottled up shipping through the Strait of Hormuz, restricting global fertilizer supplies.
“A lot of producers are pretty nervous going into this year,” said Justin Sherlock, a soybean farmer and president of the North Dakota Soybean Growers Association. “It looks like we’re going to have another year of negative returns.”
Soybeans, which are used for livestock feed, food, and biofuels, are among the top U.S. agricultural exports. But U.S. soybean farmers, who typically also grow corn, have been facing financial issues for years even before the onset of the Iran war. The global market has been awash in soybeans, driven in part by Brazil, which surpassed the U.S. as the world’s largest soybean producer years ago.
Doug Bartek, who rents three-quarters of his land, said landowners are increasing rents, causing further financial strain. “There’s a lot of what I call absentee landowners that have absolutely no idea what goes on on the farm,” he said. “All they know is their taxes went up and you get to make up the difference, some way, somehow.”
The Iran war also caused gasoline and diesel prices to surge, causing further headaches for farmers. The financial problems are showing up in some measures, with farm bankruptcies, while still relatively low, continuing to climb. In a survey of 400 farmers conducted by researchers at the Purdue Center for Commercial Agriculture in late March, almost half said their farm operation is financially worse off than it was a year ago.
