Minnesota farmers face rising costs, trade woes as planting begins
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Increased costs and other economic headwinds are sowing uncertainty and stress for Minnesota farmers as planting season begins.
What's happening: The Iran conflict is driving up fuel and fertilizer prices, adding pressure after "several consecutive years of losses," American Farm Bureau Federation economist Faith Parum said on a recent media call.
- At the same time, commodity prices for crops have fallen from pandemic-era highs. Bird flu remains a concern for the state's prominent poultry industry.
Plus: Tariffs and other impacts of President Trump's trade policies remain a "big problem," especially for Minnesota's many soybean farmers, Minnesota Agriculture Commissioner Thom Petersen told Axios.
- "Our trade is really struggling in some areas and just the uncertainty of it is still there," he said. "There's a lot of headwinds right now."
Threat level: Advocates worry the latest setbacks could push more farmers to the brink. Bankruptcies rose nationwide in 2025, a new analysis from the American Farm Bureau Federation shows.
Zoom in: Mediation cases between farmers and their lenders are also up, per University of Minnesota Extension data.
- The 866 mediation notices filed between October 2025 and February of this year represent the highest year-to-date total since the 2020 fiscal year.
Between the lines: Rising fertilizer prices have been a problem for years, dating back to the Biden administration, Petersen noted.
- But the recent spike, combined with skyrocketing fuel costs, is hitting those who were already struggling especially hard.
"A lot of farmers were able to pre-buy fuel, but the ones that didn't are in trouble," he said. "Same with fertilizer."
Case in point: "I'm just kicking myself that I didn't price more ahead of time," Megan Horsager, a sugar beet farmer in Montevideo, told MPR News.
- "Usually, June hasn't been a bad time to buy fuel, but you don't plan on the global events."
Adding to the strain: Horsager is "fairly confident" she'll lose money on her crop this year, given sugar beet prices.
- "I'm trying to be optimistic, but it definitely puts a damper on the mood."
Cause for concern: Calls to Minnesota's farm and rural issues mental health line are climbing.
- The helpline logged 314 calls in fiscal year 2025 — the most in five years — and has already topped 279 in the first nine months of the current fiscal year.
The bright spots: Drought conditions have improved, leaving farmers "cautiously optimistic" that this year's crop will be strong.
- And the workforce shortage feared by many farmers at the height of the Trump administration's immigration crackdown has largely dissipated, Petersen said.
Plus: High beef prices mean business is good for Minnesota's cattle industry.
What we're watching: U.S. Department of Agriculture Secretary Brooke Rollins says the federal government is working on plans to improve fertilizer access and affordability.
- But experts expect that prices will remain elevated through next year.
The bottom line: "I think farmers by nature are optimistic — if we weren't, we wouldn't be farming," Rob Tate, a corn and soybean farmer in Cannon Falls, told the Star Tribune.
- "So we do have hope that at some point in time, things will get better. But right now, this is a tough spot for most of our producers to be in."
Axios' Arika Herron contributed to this report.