The net income for Iowa farmers is expected to fall by 24% compared to this year. That's a total of $3 billion, according to the Rural and Farm Finance Policy Analysis Center at the University of Missouri.

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A report from the Rural and Farm Finance Policy Analysis Center at the University of Missouri forecasts that Iowa farmers' net income will decrease by 24% in the coming year, amounting to a $3 billion loss. The decline is attributed to ongoing trade disputes, particularly with China, rising operational costs, and the absence of a new federal farm bill, which has left farmers without the financial allocations they previously received.

Researchers note that while a new trade agreement with China has allowed some soybean exports, the volume remains significantly below previous levels. The combination of oversupply, high input costs, and uncertain government support has heightened concerns among farmers about potential bankruptcies and the broader impact on the agricultural sector.

Iowa farmers' incomes to decline amid trade war

A new report shows income for farmers across Iowa could drop drastically next year. The net income for Iowa farmers is expected to fall 24% compared to this year, so that's a total of $3 billion, according to the Rural and Farm Finance Policy Analysis Center at the University of Missouri. CBS News correspondent Lana Zak has more now from Iowa City, Iowa. So Lana, what is this team behind this report saying about what's dropping this increase? So Lindsay, good to be with you tonight. I spoke with the researchers at the University of Missouri who worked on this projection and what they said was the biggest single factor in this was the federal government, and that's two pronged. One is with the trade deals that they are hammering out in the ongoing trade war, but then the other part of it is that financial assistance that hasn't been articulated. For 2026, farmers here have been anxious about the fact that there is not a farm bill that has passed, so they don't have the allocations that they had in previous years. Combining all of that with the factors that we've been discussing with problems with increasing costs of operation, increased costs for fixing machinery, the trade wars, decreased amounts of purchasing from China in particular, even with the new trade agreement. All of that adds up to a substantial cut in income and they have it. The University of Missouri hasn't predicted at 24%. That could change, of course, if the federal government gets back to work and Congress in fact puts together a bill that budgets for farmers in the US. In the meantime, anything being done to help? Well, that's where things are very difficult. Of course, the the agreement with China has opened up some pathways. To shipping some of these excess soybeans that we have here in the middle of the country. But even then, China's agreement is to purchase half of what it normally purchases for this year in the years. Going forward, they're supposed to get back up to about where they were. But when we're talking about such a substantial decrease and you combine that with the other challenges that farmers have been facing and one of those challenges is ironically the fact that they've had a pretty good year and that there is in many ways an oversupply of crops. That's been a real challenge. Combine that with what's actually going well for farmers, which is livestock and high cattle prices with the idea that now that might be in jeopardy for them and they are feeling a lot of anxiety. And we're looking and very concerned, especially about the potential for increased farm bankruptcies. There's a lot of farmers here who really want to impress upon the rest of the nation how dire the situation is and how much all of this is affecting all of us depend. On our farmers, wow, Lindsay loves that. Thank you.

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Iowa farmers' incomes to decline amid trade war

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