Most Iowa farm groups grateful for latest federal financial assistance, but continue calls for bolstered trade markets

DES MOINES — Most Iowa farm groups are expressing appreciation for the $12 billion in federal assistance planned by President Donald Trump’s administration, while those farmers also continue their calls for stronger and more reliable foreign trade.

Trump on Monday announced the latest round of federal financial assistance to farmers. The latest agricultural aid package — Trump also issued $22 billion in aid to farmers during his first term in the White House — was created in response to trade market disruptions and high production costs, according to the U.S. Department of Agriculture.

U.S. farmers for months have been dealing with low crop prices, high production costs and diminished trade markets.

Trump on Monday said the latest round of farm assistance will be funded by revenue from tariffs. Those tariffs have been among the drivers of the increased costs, reduced trading markets and suppressed crop prices, farm groups and ag economists say.

Trump’s administration this week blamed the agricultural economy’s struggles on previous President Joe Biden’s administration.

The administration will make one-time payments to row-crop farmers by the end of February, the Associated Press reported. USDA will calculate per-acre payments — capped at $155,000 per farm — for each crop based in part on production costs, and only farms that make less than $900,000 per year will be eligible, the AP reported.

In Iowa, farm groups thanked Trump for the latest assistant package and implored his administration to continue working on international trade deals to provide more plentiful and reliable trade opportunities for farmers.

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“Iowa Farm Bureau appreciates the $12 billion agricultural assistance package announced today that will help mitigate financial effects on farmers,” Iowa Farm Bureau Federation President Brent Johnson said in a statement issued Monday. “Farm income is at its lowest point in 15 years, and farmers are facing severe financial stress driven by high input costs and declining crop prices compounded by a lack of global trade opportunities. As the President noted during the announcement, farmers don’t want aid — they want a level playing field — and this package provides critical support while broader trade discussions continue.”

Johnson also thanked Trump for including Dysart, Iowa corn and soybean farmer Cordt Holub in Monday’s announcement event at the White House. Holdt is a former member of the Iowa Farm Bureau’s Young Farmer Advisory Committee.

“With this bridge payment, we’ll be able to farm another year,” Holub told Trump during the event, the AP reported.

Iowa Farmers Union President Aaron Lehman expressed concern for what he said is yet unknown about the details of the administration’s plan, said the assistance will not cover farmers’ recent financial losses, and criticized Trump’s trade policy.

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The Iowa Farmers Union describes itself as a “grassroots member organization” of farmers that is “committed to promoting family agriculture in Iowa” and advocates for “sustainable production, safe food, a clean environment and healthy communities.”

“What we do know is that this won’t come close to covering all the damage farmers have been facing because of the chaotic trade policy,” Lehman said Tuesday.

“This is just a short-term relief package. Long-term damage has been done, and we have a long ways to go to recover from that long-term damage, and we have a long ways to go to get to fair trade for our farmers,” Lehman said. “We know that there are a lot of things that need to be reformed in our trade programs to ensure that the benefits reach farmers and workers and people on the ground and not just the large traders of commodities. But there is no plan to get to a fair trade solution while we’re breaking all the furniture of the current trade regime. We need to make sure that there’s a clear plan moving ahead.”

Iowa ag economist: payments will help only in the short-term

Iowa State University agricultural economist Chad Hart said Tuesday that the federal assistance will help farmers’ cash flow, but will not solve the long-term issues facing farmers that have created the need for the assistance.

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“You can think of it as cash flow support. What this is going to do is, in the short run here, it will firm up for a lot of farmers, their short-term financial situation,” Hart said. “The last couple of years have been challenging in terms of profitability and basically just bringing cash into the farm business. So these payments will help provide some cash, give farmers an opportunity to pay some bills, and that will be helpful.”

Hart said similar financial assistance packages for farmers in Trump’s first term were helpful in the same way. However, Hart also noted that the assistance packages do not solve the larger issues facing agriculture and trade, as proven by the fact that once again the administration felt compelled to provide assistance to struggling farmers.

“What (the assistance payments) don’t do is they don’t address the longer-term problems with why cash flow was low in the first place,” Hart said. “In fact, I could argue that in the short run this helps in terms of cash flow, and in the long run, it maybe hurts a little bit.

“Because the longer-term catch here is part of the reason cash flows are so negative right now is because input costs remain stubbornly high despite low (crop) prices. And part of that is being driven by this idea that farmers continue to spend money to grow the crop, and therefore keep input costs high. So these payments will just exacerbate that. So it’s going to keep input costs high, because we’re getting this cash in. …

“(Farmers) know that this is a Band-aid on the problems that they have right now and things won’t be truly fixed until prices and costs are more in line with each other.”

What other Iowa agriculture groups said

The Iowa Corn Growers Association also thanked Trump while calling for longer-term fixes. The group called on the federal government to pass legislation that would make gasoline blended with 15 percent of corn-based ethanol available year-round in the entire U.S.

Iowa Corn Growers Association President and Waverly farmer Mark Mueller said in a statement that the latest assistance will help “alleviate stress from Iowa’s corn farmers that are currently facing economic challenges due to low commodity prices, high input prices and market access challenges.”

“We also encourage the Trump administration to continue working as expeditiously as possible to secure new trade opportunities that will open foreign markets to corn and corn products,” Mueller said.

The Iowa Biodiesel Board said it was “grateful” for the administration’s assistance but said it will not cover farmers’ recent financial struggles, and stressed the need for boosting international trade and domestic markets.

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“This one-time payment helps, but it by no means will be close to making farmers whole because of the losses seen this year and the previous three years,” Iowa Biodiesel Board executive director Grant Kimberley said in a statement.

“This bridge assistance comes at a critical time when farmers are making decisions about next season’s planting amid challenging market conditions. However, the most enduring way to support our farmers isn’t just through one-time payments — it’s by bolstering robust, reliable markets for their crops,” Kimberley said. “Biodiesel adds value to every bushel of soybeans grown in Iowa, accounting for roughly 10 percent of each bushel’s worth. When biodiesel markets are strong and predictable, farmers benefit directly through better prices and more marketing opportunities.”

Kimberley also advocated for the administration to release “clear, workable guidance” on a clean fuel tax credit and finalize a “strong” Renewable Fuel Standard, the federal law that dictates how much ethanol and biodiesel is blended in the nation’s fuel supply.

“These policies directly translate into market demand for Iowa soybeans — and that’s what creates lasting value for our farmers,” Kimberley said.

Comments: (515) 355-1300, erin.murphy@thegazette.com

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