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U.S. farmers Face Financial Ruin Amid Climate Shocks, Trade Wars, and Program Cuts
Across the United States, farmers are sounding the alarm, warning of potential financial collapse. They cite a confluence of factors, including the ripple effects of former President Donald Trump’s trade policies, increasingly severe climate-related disasters, and the dismantling of crucial federal support programs. Without a significant taxpayer-funded bailout, many fear they won’t survive.
The agricultural sector,notably small- to medium-sized farms,was already navigating thin margins. Worsening climate shocks, such as droughts and floods, and unpredictable commodities markets have compounded existing pressures from large corporations dominating the supply chain. Recent weeks have seen farmers in states like Texas and across the Midwest suffer millions of dollars in crop losses due to record-breaking rainfall and widespread flooding, exacerbating an already precarious situation.
There’s a lot of uncertainty around and I hate to be used as a bargaining chip. I am definitely worried.Travis Johnson,Texas Farmer
travis Johnson,a farmer in the Rio Grande Valley (RGV) of southern Texas,encapsulates this anxiety.He lost over 1,000 acres of cotton, sorghum, and corn when a year’s worth of rain fell in just 48 hours last month. “I can see how some tariffs might help us compete with Mexico but are we really getting targeted by every other country or are we on the wrong side of this? we’ve already had two years of absolute disaster with falling prices and weather patterns … no farmer wants this but without a bailout this could be devastating and a lot more people could go under,” Johnson said.
Johnson’s region exemplifies the complex challenges. RGV farmers depend on trade with Mexico for both sales of crops like sorghum, wheat, corn, and vegetables, as well as for the import of fertilizers and equipment. They also rely on Mexican farmhands for labor. Though, Trump’s tariffs have placed a 125% tax on all U.S.products destined for China, threatening to cut off farmers from critical markets. China is a major buyer of American sorghum and cotton.
the Political Landscape and Farmer Support
despite the economic hardships caused by the previous administration’s trade war, which necessitated a $23 billion bailout for farmers between 2018 and 2019, rural counties overwhelmingly supported Trump in 2024. According to an analysis by Investigate Midwest, he secured a majority in all but 11 of the 444 farming-dependent counties, averaging 78% support.
However, this loyalty is being tested. Farmers are grappling with more than just tariffs. Widespread cuts to federal climate and conservation schemes, designed to reduce costs, greenhouse gases, improve yields, and enhance environmental health, have added to their burdens.
Furthermore, the Trump administration is dismantling local food programs that provide farmers with stable domestic markets, such as public school districts and food banks. The USAID, which annually purchased approximately $2 billion in agricultural products for humanitarian aid, has also been substantially scaled back.
The timing of the tariff announcements couldn’t have been worse for farmers. With spring crops already in the ground, or at least with land prepared and inputs purchased, switching to crops with better domestic market potential was unachievable. As Ben lilliston, director of rural strategies and climate change at the Institute for Agriculture and Trade Policy (IATP), explains, “It’s all happening so fast and in the middle of the growing season, it’s a shock to the system that’s going to be tough for farmers, especially those growing commodities for export. Tariffs are not magical, they need to be used strategically as part of wider reforms to the domestic economic agenda.”
Ben Murray, senior researcher with the consumer advocacy group Food and Water Watch, warns of the broader implications: “Without a bailout, we can only imagine how bad this will be for farmers and what an opportunity for Brazil – and this is all being done for a tax cut for the wealthy.”
| Challenge | Impact | Potential Solution |
|---|---|---|
| climate Change (Floods, Droughts) | Crop Loss, Reduced Yields | Invest in Climate-Resilient Farming Practices, Improved Irrigation |
| Trade Tariffs | Reduced Export Markets, Lower Prices | Negotiate Trade Agreements, Diversify Markets |
| Cuts to Federal Programs | Loss of Subsidies, Reduced Conservation Support | Advocate for Restored Funding, Seek Alternative Funding Sources |
| Corporate Consolidation | Unfair Pricing, Reduced Profit Margins for Small Farms | Strengthen Anti-Trust Enforcement, Support Local Food Systems |
The Shift in Agricultural Policy and Its Reversal
For decades, the Farm Bill has incentivized U.S. farmers to grow commodity crops for export, such as wheat, corn, soy, sorghum, rice, and cotton, rather than produce for domestic consumption. This has lead to a situation where the price of commodities is tied to the global market, even if sold domestically, while U.S. imports of fruits and vegetables,primarily from Latin America,have risen to account for over 50% of consumption,according to USDA data.
This system favors large, corporate-owned operations, as smaller farms struggle with volatile prices and access to government subsidies. The number of farms continues to decline, while the average farm size increases.
The Biden administration implemented policies aimed at easing the burden on smaller-scale farmers, including a greater focus on anti-trust measures, local and regional food systems, and climate resilience. However, the current administration is actively dismantling these policies.
A $19.5 billion funding package for conservation practices that improve soil health,air quality,and reduce the use of costly inputs,allocated through the Inflation Reduction Act,is now at risk. This funding was
