Farmers in Southwest Iowa are Struggling

Most people think about food costs starting at the grocery store. In southwest Iowa, the pressure starts much earlier — in the field.

Iowa farming is having a rough few years. Farm income in the state has fallen 53% between 2022 and 2024, according to a joint report from Iowa Farm Bureau, Iowa State University, and the Iowa Bankers Association. When farmers struggle, the towns built around farming struggle too. In Warren, Madison, Adair, and Union counties, that pain is showing up in lost jobs and tighter household budgets.

The Cost of Growing Food Went Up. The Price Didn't.

It costs more to grow a crop than farmers can sell it for. Corn and soybean production costs have climbed 37% and 36% respectively since 2021 — equipment, seed, and fertilizer all up. The market price for those crops hasn't kept up, and Iowa farmers are now in their third straight year of selling at a loss or barely breaking even. "My corn and soybeans, I don't know if I'll make money on them this year…I'm hoping I'll break even," Iowa Corn Growers Association president Mark Mueller told KCRG.

Trade Wars Shut the Door on Key Buyers

A five-month Chinese boycott of American soybeans, triggered by the Trump administration's tariff policies, cut off one of Iowa's biggest export markets at exactly the wrong time. Iowa Farmers Union president Aaron Lehman warned that years of relationship-building with overseas buyers were being undone — those buyers no longer see the U.S. as a reliable long-term supplier.

Factory Towns Are Next

When farmers stop making money, they stop buying equipment. When equipment orders dry up, factories cut staff. Agriculture drives nearly a quarter of Iowa's total economic output, so a downturn on the farm doesn't stay on the farm. Iowa State's Center for Agricultural and Rural Development director John Crespi said for every dollar lost in ag-connected industries, $1.50 stops flowing through the broader state economy. "It's in everybody's interest that this turns around," he said.

Nearly 1 in 5 mid-size and large Iowa farms were considered financially vulnerable as of late 2025 — more than double the share from 2022. Farm bankruptcies across the U.S. spiked 46% last year, with Iowa filings more than doubling.

It's Not Getting Better Yet

Iowa farm income is projected to fall another 24 to 25% in 2026, and forecasters expect the downturn to extend into next year even with federal support payments factored in.

For the small towns of southern Iowa — the grain elevators, the county seats, the local hospitals, the families deciding what they can afford this season — the hope is that the cycle turns. So far, it hasn't. Costs are still up, markets are still uncertain, and the pressure keeps building.