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Farmers are experiencing significant economic pressures, with lower crop prices for corn and soybeans and rising operating costs squeezing their profits. Heath Donner, a fifth-generation farmer in Arkansas, is one such example.
Donner’s family farm, located in Mississippi County, manages approximately 3,300 acres of land that produce cotton, corn, soybeans, and peanuts. In the first half of 2025, historic flooding caused substantial damage, wiping out up to 25% of his corn yield. This event compounded challenges already anticipated due to increased operating costs and weaker crop prices.
The National Corn Growers Association (NCGA) calls this period an “economic crisis hitting rural America,” noting that farmers have faced widening negative profit margins for three consecutive years. Production costs, including seeds, fertilizers, pesticides, and machinery, remain near record highs.
Brian Duncan, an Illinois farmer and president of the Illinois Farm Bureau, emphasizes: “The squeeze is real from both sides of the equation.”
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While farm prices have a limited effect on retail prices, farmers’ economic struggles could ripple through the broader economy as they cut back on spending. The NCGA’s chief economist, Krista Swanson, warns that tariffs might exacerbate the situation by driving up import costs and prompting retaliation.
China, which imports roughly 60% of global soybean supplies, has declined to book U.S. suppliers’ 2025 harvest, turning instead to Brazil. This decline could have severe impacts on U.S. soybean farmers, especially without reaching an agreement with China by autumn.
Federal Reserve surveys suggest that farm income and credit conditions are weakening while demand for financing is increasing. Younger farmers tend to be more at risk due to limited equity to fall back on during unprofitable years.
The Trump administration announced over $60 billion in subsidies for farmers over the next decade, but assistance won’t start until 2026, potentially too late for many struggling farmers like Donner.
Trade groups are urging the administration to remove trade barriers, implement new deals, and address higher input costs. The NCGA calls on officials to prioritize soybeans in trade negotiations and work to remove China’s retaliatory duties.
Meanwhile, setting up new export markets is challenging, especially compared to China’s purchasing power. Various countries like Indonesia are stepping up their agriculture imports amid ongoing negotiations.
David Ortega, a food economist at Michigan State University, warns that it is far easier for a country like China to find a new supplier than it is for U.S. farmers to establish new export markets. This concern is magnified by legal challenges to the Trump administration’s use of tariffs in court.
Heath Donner remains hopeful, waiting for real upticks in demand to help his farm make it through to next fall: “We’ve got a crop coming that’s got to go somewhere.”
