Iowa farmers question Trump’s promised agricultural boom amid rising costs
Midwestern growers say soaring input prices, health-insurance premiums and trade tariffs are undermining President Trump’s claim of a coming “golden age” for U.S. agriculture.
Iowa farmer Aaron Lehman, who runs a multi-generation operation near Polk City, said his health-insurance premiums have more than doubled since the start of the year after federal subsidies expired, while diesel, fertilizer and other input costs have risen sharply amid the ongoing Iran conflict. Crop prices remain low, leaving many producers “tightening their belts,” Lehman, president of the Iowa Farmers Union, told CNBC.
Lehman dismissed President Donald Trump’s promise of a “golden age of American agriculture,” asking where the promised benefits are materialising. He said there is no sign that family farms or rural communities are thriving under current policies.
The White House countered that the challenges stem from the previous administration, with spokesperson Anna Kelly blaming former President Joe Biden for a growing trade deficit, higher input costs and “woke DEI agricultural policies.” Trump has highlighted rollbacks of regulations, a doubled estate-tax exemption for farm heirs, and $12 billion in direct payments to farmers funded by tariff revenue. A supplemental funding request later added more than $10 billion in farm aid.
Nevertheless, analysts note that the tariff regime has cut off key export markets, while the Iran war has pressured fuel and fertilizer supplies, driving prices higher. The American Farm Bureau Federation projects a $32 billion loss on major crops in 2027, up from $31 billion in 2026, and a recent survey found 70 % of U.S. farmers cannot afford needed fertilizer.
A joint report from Iowa State University, the Iowa Farm Bureau and the Iowa Bankers Association showed farm bankruptcies rising in 2025 and 2026, with 19 % of midsize and large Iowa farms classified as financially vulnerable in December 2025—more than double the 2022 level.
Former Trump legislative affairs director Marc Short said the president’s trade policies have “punched farmers in the mouth,” especially tariffs on China that prompted retaliatory duties and forced Chinese buyers to seek alternative suppliers. He warned that the lack of new market options could have political repercussions for the GOP.
Corn growers have fared better, citing strong global demand for livestock feed and record-high export volumes, according to USDA data and industry expert Hart. However, other sectors remain strained, and many farmers say they prefer stable market income over additional government aid.
Congress has not passed a farm bill since 2018, leaving key programs such as subsidised crop insurance and commodity price support in limbo. While direct payments have provided short-term relief, industry voices argue they do not address the underlying economic uncertainties facing American agriculture.