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IOWA WEATHER

Farmers in Iowa Battle Price Squeeze



By Andi Anderson

The 2025 Iowa Farm and Rural Life Poll, conducted by Iowa State University Extension and Outreach Sociology, provides an updated look at the concerns and experiences of farmers across the state.

With nearly 950 respondents, this annual survey highlights ongoing economic challenges and stresses caused by fluctuating crop prices and steadily rising input costs. Farmers continue to express concern about their ability to stay profitable in a highly specialized production system.

A major focus of this year’s poll was the persistent cost-price squeeze, a dynamic that places farmers under pressure when crop prices fall while input costs remain high.

As J. Arbuckle explained, “Prices of agricultural commodities such as corn and soybeans are highly volatile, and while the costs of inputs such as seeds and fertilizer tend to rise when prices are high, they are slow to decline when crop prices drop. This puts farmers in a stressful ‘cost-price squeeze’ situation. This year’s survey examined farmers’ feelings about that and related dynamics.”

Survey findings show that nearly all farmers believe that input costs rise faster when profit margins increase. About 88% agreed that land rents and input expenses erode corn and soybean margins more quickly than in the past.

Economic uncertainty remains a widespread concern, with 85% agreeing that boom-bust commodity cycles create hardship. Many farmers report feeling limited control over profitability, and 67% believe that heavy reliance on corn and soybeans increases financial risk.

Farmers also shared views on federal safety-net programs, with 65% saying that crop insurance and Price Loss Coverage remain crucial tools for stability. At the same time, 64% expressed concern about how upcoming Farm Bill changes could affect their operations.

Structural change in agriculture remains a major topic. About 69% believe that specialization in crops like corn, soybeans, and hogs has contributed to the loss of farms.

Only a small percentage feel that the shift away from diversified farms has been positive for farmers or rural communities.

As Arbuckle noted, “It’s pretty clear that Iowa farmers feel that the shift over time from diversified systems to specialized production of a few commodities has been hard on farmers and rural communities, collectively speaking.”

He added, “We’ve asked most of these questions multiple times since 2009, and there has been surprisingly little change in responses over time. These economic stressors appear to be chronic and affecting most Iowa farmers, so we need to be thinking about how to help farmers cope, or better yet, figure out strategies, such as diversification, to reduce vulnerability to crop-price squeeze dynamics.”

Support resources remain available for farm families facing stress. David Brown emphasized this need, stating, “Farm families today face tremendous stress from high input costs and the unpredictability of markets and weather. These pressures can feel overwhelming, but they don’t have to face them alone. There are many resources available, such as Iowa Concern, which offers free, confidential support for Iowans navigating difficult times.”

The 2025 report also includes findings on agricultural drones, soil compaction concerns, and opinions on renewable energy production, offering a fuller view of farmer experiences and priorities.

Photo Credit: getty-images-elhenyo

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