NEW REPORT: Rising Input Costs Continue to Squeeze Iowa Farmers

DES MOINES, IA – Iowa farmers are facing yet another blow, as a new report from the National Corn Growers Association finds that U.S. farmers are paying significantly more than their global competitors for seed, crop protection products, and other supplies needed to grow crops.

The report highlights the financial pressure on Iowa farmers after four consecutive years of shrinking margins. Rising input costs have left many family farms barely breaking even, with some comparing today’s challenges to the conditions leading up to the 1980s Farm Crisis. Iowa farmers have been hit especially hard as the nation’s largest corn-producing state and second-largest soybean producer, with farm bankruptcies rising as producers struggle to keep their operations going.

On top of rising costs for seed and crop protection products, farmers are also facing higher fertilizer and fuel expenses. Earlier this spring, as farmers headed into planting season, many reported having to pay “$200, $300 a ton more” for fertilizer than they did the previous fall, adding even more pressure to already thin profit margins.

“Iowa farmers work harder than anyone, but they’re being asked to do more with less every year,” said nominee for lieutenant governor Dave Muhlbauer. “With input costs continuing to climb while profits fall, family farmers are the ones getting squeezed. Our farmers shouldn’t have to fight this hard just to stay afloat while insiders play politics. We can’t afford another four years of the same. It’s time for a new direction — one that puts Iowa farmers first and gives family farms a fair shot to succeed.”

 

As governor, Rob Sand’s “A Healthier Iowa for All” plan would help make farming more affordable by expanding conservation tax credits that help farmers pay for practices they already want to implement. His plan creates an income tax credit for conservation practices and a per-acre property tax credit for farms using approved nutrient management plans — helping family farmers lower costs while protecting Iowa’s land and water.