U.S. Corn and Soybean Farmers Warn of Financial Crisis as Trade War and Price Collapse Deepen
U.S. corn and soybean producers are sounding alarms over a worsening financial crisis triggered by collapsing crop prices, soaring production costs, and uncertainty from ongoing trade disputes.
U.S. corn and soybean growers warn of financial crisis as prices crash, costs rise, and trade war with China disrupts farm exports and incomes.
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The National Corn Growers Association (NCGA) issued a stark warning, highlighting that corn prices have fallen more than 50% since their 2022 peak. Production costs have eased by only 3% in the same period, leading to an estimated loss of 85 cents per bushel. The NCGA cautioned that the outlook for next year is even more challenging, with further price declines expected alongside higher expenses.
The NCGA urged Congress and the Trump administration to support farmers by expanding demand through higher ethanol blends and increased access to international markets.
The American Soybean Association (ASA) raised similar concerns, writing to President Donald Trump that U.S. soybean farmers face a “trade and financial precipice.” The group stressed that China, once the largest buyer of American soybeans, has shifted purchases to South America as tariff retaliation continues. The ASA called for soybean trade to be prioritized in U.S.–China negotiations, including commitments for major Chinese purchases and the removal of duties.
Soybean prices have dropped around 40% since their 2022 peak, leaving farmers under severe financial pressure. Rising costs for equipment and inputs have compounded the strain, and the ASA emphasized that U.S. soybean producers cannot withstand a prolonged trade conflict with their top customer.
The Federal Reserve’s latest survey of farm financial conditions reinforced the concerns of growers. Lower farm incomes have reduced liquidity across agricultural regions, with higher demand for financing and deteriorating credit conditions. Roughly 30% of farmers in the Chicago and Kansas City Fed districts reported weaker repayment rates compared to last year, while 40% of respondents in the Minneapolis Fed region and 50% in the St. Louis Fed region noted similar declines.
Federal support has been introduced to provide relief. The One Big Beautiful Bill Act, signed in July, includes about $66 billion in agriculture-focused spending, with nearly $59 billion designated for farm safety-net enhancements. Similar to bailouts during the first U.S.–China trade war, this assistance aims to stabilize farm incomes.
At the same time, new trade agreements are opening alternative markets in Asia. Indonesia and Bangladesh have committed to purchasing more U.S. crops, while Vietnam, the Philippines, and Thailand are expected to increase feed grain imports. According to the U.S. Soybean Export Council, growing demand in Southeast Asia offers opportunities to strengthen market access for U.S. agricultural exports such as soymeal.
The combination of collapsing prices, mounting production costs, and trade volatility continues to challenge U.S. farmers. With harvest season approaching, the ability of new trade deals and federal support to offset financial pressures remains a central focus for the agricultural sector.
