Iowa farmers face some of their toughest times since 1980s crisis

State of play: Crop commodity prices have fallen from pandemic-era highs, with corn dropping from near $6–$7 per bushel to the low-$4 range and soybeans from $13–$15 to around $10 per bushel.

• Meanwhile, fertilizers — often the single highest cost for farmers — have remained near peak levels.
• Diesel, used across nearly every part of farming, has surged since the start of the Iran conflict, with prices in Iowa around $4.80 per gallon, up from about $3.40 a year ago.

What they're saying: Mark Mueller, a northeast Iowa farmer and president of the Iowa Corn Growers Association, tells Axios that the current state of farming is more challenging now than at any time since the 1980s farm crisis.

• He says the stresses are showing, with rising bankruptcies and lenders becoming more reluctant to provide farmers with operational loans.
• "There's going to be fewer farmers next year than there is this year," Mueller said.

Context: The U.S. ag economy has been in a recession for the last couple of years, and could become potentially deeper than an ag slump from about a decade ago, Iowa State economist John Crespi tells Axios.

• Years of large harvests have kept supply high, pushing prices down, Crespi said.

• Workforce struggles are also factors, ISU economists Chad Hart and Peter Orazem told Iowa Press last year.

Yes, but: Crespi sees a stressed but not collapsing farm economy.

• Cattle markets are strong and corn usage is high, being driven by exports and global demand for livestock feed, he said.
• Groups such as the Renewable Fuels Association have recently applauded ongoing Congressional efforts to permanently allow year-round E15 sales.

What's next: If high input costs persist, Crespi says bigger impacts might come later this year, when farmers make planting decisions for the spring of 2027.

• For now, most farmers have already locked in this season's plans, meaning overall production should remain relatively steady.