Des Moines Sun

Senator Chuck Grassley of Iowa has expressed concern about warning signs in the U.S. farm economy, drawing parallels to the 1980s Farm Crisis when many family farms were lost and rural communities suffered lasting impacts.

“As a lifelong family farmer, I understand Iowa farm families weather the storms of cyclical markets and natural disasters. Managing risk is central to the job. As harvest season gets into full swing, I’m keeping a close eye on dark clouds looming on the horizon, inching too close to home for tens of thousands of Iowa farmers. Roughly one-third of family farms was lost in the U.S. during the Farm Crisis in the 1980s, and hundreds of farmers took their own lives, overcome with the anguish of losing their livelihoods. The farm economy today has telltale warning signs of a brewing storm that could lead to financial devastation the likes of which we haven’t seen in four decades,” Grassley said.

He noted several challenges facing farmers: increased borrowing costs due to rising prices for inputs like fuel and fertilizer, low grain prices paired with high production costs affecting farmland values, debt-to-income ratios putting pressure on credit conditions, global trade uncertainty—especially with China—hurting grain prices, and supply chain disruptions raising fertilizer costs. He reported hearing growing concern from constituents during his meetings across Iowa.

Grassley stated, “History tells us policymakers in Washington can’t afford to wait too long to avert catastrophic losses in the farm economy. We must heed the lessons from the 1980s. Back then, the farm economy buckled under soaring interest rates, too much debt, low commodity prices and the Soviet grain embargo. The ripple effect was widespread and reshaped the economy and population of rural communities throughout America’s Heartland.”

He also recognized Farm Aid for its efforts: “Recently, Farm Aid celebrated its 40th anniversary and I applaud this organization for shining a spotlight on struggling farmers. As Iowa’s senior U.S. Senator, I’m working to ensure Congress and the White House don’t sit on the sidelines.”

Addressing actions he is taking in response to these issues, Grassley said: “First of all, I’m turning up the volume in Washington to ensure our nation’s political leaders understand the gravity of the situation. Farmers make up only two percent of our population who feed the other 98 percent of Americans. Food security is national security. We can’t afford to let the farm economy collapse like it did in the 1980s.” He added that he is collaborating with Senate Agriculture Committee members and administration officials on an aid package for farmers but emphasized that “farmers want markets to sell their commodities, not aid.”

Grassley questioned why soybean exports were not included in recent trade talks with China: “I want to know why soybean exports to China weren’t part of recent negotiations at the U.S.-China trade meeting in Spain. America’s farmers already faced a steep trade deficit compounded by the Biden administration’s failure to pursue and expand trade agreements with our partners overseas.” He warned that losing market share could have lasting consequences: “The U.S. can’t afford to lose market share to other nations that we may never win back.”

He recounted hearing concerns similar to those during past crises: “When I talk with farmers and ag lenders today, I’m hearing concerns reminiscent of the 1980s farm crisis.” Some lenders have reportedly told farmers they may need to sell land.

Grassley highlighted efforts related to renewable fuels policy and fertilizer markets: “As an outspoken champion for renewable fuels, I’ll keep pushing to boost domestic markets... I’m also working to stabilize fertilizer markets and push for price transparency.” He cited his bipartisan Fertilizer Research Act as an effort aimed at improving productivity while lowering costs.

He mentioned joining other senators urging Secretary Doug Burgum at Interior Department to add phosphate—a key fertilizer component—to a federal list meant to guide investment decisions intended to reduce reliance on foreign sources.

Improvements made through recent tax legislation are set to take effect next year that could enhance support systems for farms facing financial pressures.

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