Farmers Struggle Amid Rising Costs and Trade Tensions

American farmers are struggling to make ends meet due to rising input costs and declining export sales. Rick Telesz, who raises soybeans, corn, and dairy cows on about 700 acres in western Pennsylvania, is expecting a promising soybean crop this fall but is not confident he'll break even.

The cost of fertilizer has increased by 15% this year compared to last, while diesel fuel prices have jumped by 80%, making it difficult for farmers to turn a profit. Telesz pays about $6 a gallon for diesel and his combine alone burns through 150 gallons a day.

The trade war with China has also taken a toll on farmers' bottom lines. According to economist Chad Bown, China's purchases of U.S. farm exports are at much lower levels than they were pre-Trump 2.0. The U.S. Department of Agriculture projects that farm revenue will increase this year due to higher crop prices and sales, but rising expenses will likely offset these gains.

Some 200,000 farms have gone out of business since 2020, and farmers are becoming increasingly desperate. 'We're sick of working our back ends off and losing money,' says Joe Peiffer, a bankruptcy attorney who works with farmers in Iowa, Missouri, and Illinois.