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As we inch closer to another Farm Bill expiration date, it is crucial that our conversations center around the challenges facing farmers across Iowa, who form the backbone of our rural economies.
The agriculture, forestry, and fishing and hunting industries account for $13 billion of our state’s GDP. Even within the manufacturing sector – which is the industrial sector comprising the largest share of our GDP – Iowa has thirteen times the concentration of agricultural and construction equipment manufacturing compared to the rest of the nation, according to the Iowa Economic Development Authority. Despite the critical role they play in our economy, farmers are currently navigating a period of great uncertainty as economic challenges that impact their daily operations continue to pile up.
One of the most pressing issues the agricultural economy faces today is the sharp decline in commodity prices. The prices per bushel for key crops such as corn and soybeans have drastically fallen since 2022, and recent projections from the U.S. Department of Agriculture (USDA) don’t indicate changes to the downward trend this fall.
As I talk to farmers across my district, I hear about the pressure that these price declines place on their balance sheets. To add insult to injury, USDA’s quarterly agriculture trade outlook forecasts a $42.5 billion agriculture trade deficit for 2025. Without competitive access to export markets for commodities, our farmers will continue to feel the financial strain brought on by high input costs and low commodity prices.
By passing an updated Farm Bill, we can provide essential support for Iowa farmers who rely heavily on a robust, federal farm safety net to protect against unexpected losses. The market price supports and federal investments in trade programs included in the Farm Bill would go a long way in providing much needed relief for farmers and lenders operating on outdated authorities set in the 2018 Farm Bill.
The export programs included in the Farm Bill such as the Market Access Program (MAP) and the Foreign Market Development (FMD) program play a key role in expanding access to new, global markets and have a proven, historically good return on investment. Strengthening these programs is vital to supporting American agriculture and helping farmers manage risk effectively.
These challenges are far from the only critical vulnerabilities farmers face. Just a couple of years ago, the fallout from the COVID-19 pandemic, geopolitical conflicts, and misguided administrative policies led to a supply chain meltdown and sky-high input costs that further chipped away at an already razor thin farm profit margin. Further, a producer’s ability to transport goods, access affordable labor, or avoid regulatory red tape are far from guaranteed.
Yet, as farmers struggle to repay operating loans, a few politicians in Washington still insist on leveraging the Farm Bill as a political football. Enough is enough. While another, short-term Farm Bill extension may be necessary, we cannot continue to drag our feet on making meaningful reforms and allowing our farmers to suffer the consequences of status quo.
Congress has a responsibility to protect American agriculture, and I firmly believe that the Farm Bill that passed out of the House Agriculture Committee in May does just that.
Whether the source is market fluctuations or unfavorable weather conditions, Iowa farmers face uncertainty every day as they to continue to feed, fuel, and clothe our nation. It is past time to pass a new Farm Bill to give farmers the stability they need to plan for the future.
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