Agricultural trade groups are warning that farmers are facing tough times. Crop prices have been falling, and credit conditions are getting worse. These groups are asking lawmakers to help farmers access export markets, including China, which is still in a trade dispute with the U.S.
U.S. corn and soybean producers have been sounding the alarm as prices for their crops have dropped in recent years while President Donald Trump’s trade war continues to affect them.
On Thursday, the National Corn Growers Association said rural America is in an “economic crisis” because crop prices are falling while costs for things like seeds and equipment remain near record highs.
Corn prices have dropped more than 50% since their 2022 peak, while production costs have only gone down by 3%. This means farmers are losing about 85 cents per bushel. The NCGA warned that next year could be even worse, with lower prices and higher costs.
The group called on Congress and the Trump administration to increase demand for corn, including through higher ethanol blends and greater access to foreign markets.
Earlier, the American Soybean Association sent a letter to Trump, saying that “U.S. soybean farmers are standing at a trade and financial precipice.” They asked Trump to prioritize soybeans in trade talks with China, including large purchase commitments and the removal of Chinese tariffs.
“Historically, the U.S. was the provider of choice for Chinese customers,” the letter said. “But because of ongoing tariffs, China has turned to our competitors in South America, especially Brazil, which has boosted production since the last trade war.”
With harvest season coming soon, the association added that China hasn’t bought any U.S. soybeans for the next few months. The longer trade talks drag on, the harder it will be for farmers.
Like corn growers, soybean farmers are struggling with lower prices and high costs. Since 2022, soybean prices have fallen about 40%.
“Soybean farmers are under extreme financial stress,” the group said. “Prices keep dropping while costs for inputs and equipment are high. U.S. soybean farmers cannot survive a long trade dispute with our largest customer.”
Farm Incomes and Credit Conditions Decline
The Federal Reserve’s latest survey of farm finances shows the same trend. Lower incomes have reduced farmers’ cash flow and increased the need for loans.
Credit conditions are also worse. About 30% of farmers in the Chicago Fed and Kansas City Fed districts reported lower repayment rates than last year. In the Minneapolis Fed region, the number was around 40%, and in the St. Louis Fed region, it was 50%.
Despite these challenges, U.S. farmers are set to receive financial help. After Trump launched the latest trade war, the administration and lawmakers discussed a bailout similar to the one during Trump’s first term.
The One Big Beautiful Bill Act signed in July includes roughly $66 billion for agriculture, with about $59 billion for farm safety-net programs.
Other trade deals Trump has negotiated could also help U.S. farmers sell more crops in Asia. Countries like Indonesia and Bangladesh have agreed to increase purchases, and Vietnam, the Philippines, and Thailand may buy more feed grains.
“There have been productive trade discussions which give the U.S. a chance to expand market access in our region,” said Timothy Loh, the U.S. Soybean Export Council’s regional director for Southeast Asia & Oceania, told Reuters.
“We expect higher demand for U.S. products like soymeal and other agricultural exports in Southeast Asia.”
