Farmers Face Perfect Storm of High Costs and Trade Tensions

Farmers in North Dakota and western Minnesota are struggling to stay afloat as tariffs, elevated input costs, and global trade tensions squeeze them from both directions.

Jarett Keith, who operates a family farm near Sherwood, North Dakota, is one of many farmers facing a math problem. This year's dry urea fertilizer prices have skyrocketed to $875 per ton, making it difficult for him to pencil out the costs. Fuel costs are also a major concern, with Keith estimating that they'll eat up around 10% of his profits.

Cory Hart, who runs a 9,000-acre grain operation in Wells County, notes that the trade war with China had a devastating impact on corn, soybean, and wheat prices last year. While President Trump's decision to renegotiate trade agreements and lift tariffs has brought some relief, Hart warns that it's not a permanent solution.

Dr. John Ikerd, professor emeritus of agricultural economics at the University of Missouri, cautions that farm bankruptcies have risen in recent years but are still nowhere near those of the 1980s. However, he notes that the status quo 'could evolve into a crisis if there was a domestic and global recession similar to the 1980s.'