Feature

By Mara Watts

As 2025 comes to an end, few sectors have felt the economic strain as deeply as American agriculture. Tariff policies under the Trump administration have created a ripple effect across global markets, farm incomes and rural communities, leaving many small and mid-sized producers fighting for survival.

To understand what took place and how it’ s affected U. S. farmers, Rod Skyles, The Unconventional Economist, shares his perspective. Skyles grew up on his father’ s Idaho farm and later co-founded a material science and agricultural contracting company. With a background in economics, history, politics and hands-on farming, Skyles offers a unique viewpoint on the economic pressures facing farmers today.

An Economic Shock

According to Skyles, the tariff battle with China, particularly before the October 30 agreement, had a dual impact on U. S. farmers, affecting both revenue and expenses.

“ Farmers took a lot of the brunt, because China is our biggest trade partner when it comes to agriculture,” he explains.“ This was especially true in the soybean business.”

In 2025 alone, corn, sorghum, wheat and pork markets took large hits. But the most significant was the soybean market, which saw the largest loss, declining about $ 20 billion in sales. A lot of this was due to China redirecting soybean purchases to Brazil, creating oversupply in the U. S. and driving prices down.

At the same time, fertilizer and other inputs became more expensive due to import tariffs.

“ Farmers not only lost sales, but then the price of their products went down significantly because of oversupply,” he says.“ At the same time, they’ re paying more for inputs, like fertilizer. They got the brunt of both sides. It’ s not been a good year for farmers from that standpoint.”

Farm Finances Under Strain

Although much of the 2025 data won’ t be available until well into 2026, the year-to-date numbers are painting a pretty grim picture for farm businesses nationwide.

The Midwest, where much of the soybeans and corn are grown, has taken a significant toll due to the tariffs. In this area alone, farms are seeing net income drop by 15 %, and bankruptcies are projected to be up at least 50 % this year.

Skyles recalls a farmer he works with who was forced to sell a multigenerational farm just to stay afloat:

“ He said he’ ll never be able to buy it back,” he shares.“ Our farmers work so hard. They take incredible amounts of financial risk to make such a small amount of money.”

Even government aid failed to soften the blow. According to Skyles, the top 10 % of farm companies received 75 % of the aid:“ The little guy farming 300 acres— the family that needed it the most— didn’ t get it.”

On top of financial strain, farmers are also experiencing the emotional toll this year has created.

“ I’ ve talked with farmers, especially those in the Midwest, and they’ ve shared that there’ s been a spike in farmer suicides,” Skyles adds.“ The pressure is palpable— it’ s been really tough.”

10 | 800-247-2000 | 515-955-1600 | December 2025