Iran War, Tariffs and Costs Squeeze Midwest Soybean Farmers
An Associated Press report details how Midwest soybean farmers enter the 2026 planting season facing a pileup of pressures: persistently low global soybean prices from years of oversupply, Trump administration tariffs that triggered a trade war with China, and the Iran war’s disruption of fertilizer shipping through the Strait of Hormuz that has driven fertilizer and fuel costs sharply higher. Farmers like Doug Bartek of Wahoo, Nebraska, who chairs the Nebraska Soybean Association, say input costs for seed, chemicals, parts and equipment have seen 'drastic markup' while soybean prices lag, leaving many expecting another year of negative returns despite soybeans being a top U.S. export. USDA data cited in the piece show soybean operating costs have stayed elevated since 2020 and are projected to rise again in 2026, while land values and rents in the Midwest keep climbing, with many producers renting most of their acreage from absentee owners who are raising rents as property taxes rise. Agricultural economists from Iowa State and Purdue note Brazil’s rise as the world’s largest soybean producer and record global output have depressed prices even as U.S. farmers’ costs mount, underscoring how geopolitics, market structure and domestic cost inflation are converging on a sector that helped build the rural Midwest. The article captures growing anxiety among growers, with farm leaders in Nebraska and North Dakota warning that even an Iran ceasefire announced April 7 may not quickly unwind supply bottlenecks or restore profitability for U.S. producers.
📌 Key Facts
- Midwest soybean farmers report sharply higher input costs for fertilizer, fuel, seed, chemicals, parts and equipment, worsened by Iran war–related disruptions to fertilizer shipping through the Strait of Hormuz.
- Tariffs imposed by the Trump administration last year and the resulting trade war with China have further weakened U.S. soybean prices and export prospects.
- USDA data show soybean operating costs have remained elevated since 2020 and are projected to increase again in 2026, while global soybean production continues to hit record highs, led by Brazil.
- Many Midwest farmers rent a large share of their land; in Nebraska, farmer and association chair Doug Bartek says roughly three-quarters of his acreage is rented and landlords are raising rents as property taxes climb.
- Soybean grower leaders in states such as North Dakota say they expect 'another year of negative returns' despite soybeans being among the top U.S. agricultural exports.
📊 Relevant Data
In 2022, the average age of U.S. farm producers was 58.1 years, up 0.6 years from 2017, continuing a long-term trend of aging in the U.S. producer population.
Farm Producers — USDA National Agricultural Statistics Service
In 2022, White producers operated 93% of all U.S. farms, while Black producers operated 1.9%, Hispanic 3.4%, Asian 0.7%, and American Indian 1.8%; this contrasts with U.S. population shares where Whites are about 59%, Blacks 13%, Hispanics 19%, Asians 6%, and American Indians 1%.
3 Key Takeaways from the Latest USDA Census of Agriculture — HEAL Food Alliance
Approximately 30% of global fertilizer trade passes through the Strait of Hormuz, making disruptions there a significant driver of global supply shortages and price increases.
The Iran war's impacts on global fertilizer markets and food production — International Food Policy Research Institute
Brazil surpassed the U.S. as the world's largest soybean producer due to expansion into new lands, favorable climate, lower land costs relative to the U.S., and infrastructure development.
Two Reasons Why Brazil Has Emerged as a Global Leader in Soybean Production — Barron's
In 2024, nearly 80% of rented U.S. farmland was owned by non-farming landlords, with the Midwest having the highest number of such landlords managing rental ground.
Most of the U.S. Rented Farmland is Owned by Non-Farmers — USDA National Agricultural Statistics Service
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