The economic challenges facing farmers are largely the same as always. But recent tariffs on imports added a new layer of anxiety for the U.S. agricultural community, especially in states like Illinois where farming is a crucial part of the economy.
Illinois agricultural products generate over $51 billion each year, and the state is the nation’s fifth-largest exporter of agricultural goods, shipping $10.6 billion worth of products to other countries each year, according to the Illinois Department of Agriculture.
“When you look at tariffs and how they affect exports, that’s kind of making uncertainty as far as where things are going to go,” said Ron Pierson, a farmer in northern Bureau County.
In addition to traditionally taking financial risks in advance of uncertain returns, farmers are at the mercy of global markets and fluctuating farmland rental rates.
In a letter to President Donald Trump this fall, U.S. Rep. Eric Sorensen said farmers are suffering the consequences of the current domestic and global economic climate. In particular, he warned that a trade war with China could cause “irreparable harm” to the Illinois and the U.S. farm economy.
As the president prepared to meet with Chinese president Xi Jinping, Sorensen urged him to secure beneficial agreements for American agriculture. “Illinois farmers need help now,” he wrote.
Trump said in late October that he had reached an agreement with Jinping under which China would immediately begin purchasing “tremendous amounts” of soybeans and other agricultural products. But farmers are still waiting for the agreement to bear fruit, according to Pierson.
“Farmers wonder whether China will follow through on their commitments to buy what they’ve agreed to purchase,” he added. “So far, there’s been little follow-through.”
Illinois is the country’s leading producer of soybeans and the country’s second-leading corn producer behind Iowa. Illinois farmers devote most of their acreage to those crops.
The USDA’s September crop production forecast projected that 2025 corn and soybean yields will be the nation’s highest on record. The expected U.S. corn harvest is 16.8 billion bushels, and the projected soybean yield is 4.25 billion bushels.
Brazil also experienced a record-high soybean yield of nearly 178 million tons. However, high yields internationally are not necessarily good news for farmers trading their produce on the global market because they drive prices down, according to Pierson.
“Right now, there’s just a lot of grain in the world and that’s weighing in prices,” he said. “And the big thing is the cost of production is just getting higher all the time. With input prices being higher, it’s just going to make it a little more uncertain as to whether there’s profit out there to be made.”
Brian Guth, who grows corn and soybeans near Eureka, said that farmers are growing progressively larger crops. Like Pierson, he believes the abundance of corn and soybeans on the global market lower the prices on commodities, which in turn lowers farmers’ profit margin.
“That’s one of the reasons why prices are down,” he said. “Also, outside markets, whether it be China or Brazil or whoever, play into it.”
What economic challenges are part of farming?
Lowell Stoller, a consultant with Farm Business Farm Management, said that a farmer’s income is a function of yield and price. Farmers have little control over either.
“Commodity prices are determined by a complex set of worldwide supply and demand factors,” Stoller said. “Farmers are ‘price takers,’ not ‘price makers.’ In other words, they must accept the prices offered by end-users rather than determining the prices to charge for their products.”
Agriculture is a profession that traditionally carries uncertainly because of the financial risks farmers must take in advance. According to Stoller, grain farmers are subject to between 12 and 18 months of risk from the time they buy crop input products such as fertilizer, seed and chemical before all their crop revenue comes in.
“Almost all expenses are paid before it is known how many bushels will be available to sell,” he said.
Cash rental rates can also present farmers with significant economic difficulties. Illinois FBFM data indicates farmers rent nearly 50% of the acres they farm. Cash rents are determined prior to the crop year, may not include provisions to adjust the rate for yield or price variability, and typically do not adjust quickly, Stoller said.
What are farmers doing to navigate current challenges?
Rising crop input costs, rising interest rates, and reduced revenue because of the abundance of grain on the global market, have used up working capital and led to decreased liquidity in farming, Stoller said. Because of this, he saw a decrease in capital purchases like equipment and buildings in 2025. Many farmers and spouses also are seeking off-farm jobs to supplement their income.
“Farmers are analyzing every item on their income statements for opportunities to increase revenue or decrease costs,” Stoller added. “Decisions for fertilizer choices and rates are being carefully examined to optimize financial results, and rental arrangements are being reviewed to ensure profitability goals are being met.”
Guth said he and other area farmers have been examining strategies to reduce input costs.
“We’re look at reducing the amount of fertilizer and chemicals that we put on crops if we can,” Guth said. “We’re also looking at different seed varieties and going from there.”
Pierson said farmers seem to be cutting back on unnecessary purchases, pursuing off-farm income streams, and either reducing machinery purchases or buying used rather than new machinery. Additionally, farmers have historically saved money during profitable periods to prepare for tough times.
“There’s only so long that can go forward,” Pierson said. “But farmers find ways to be resilient, and we’ll come through. It’s just getting to be tougher than it’s been in a long time.”
What does the future hold for Illinois farmers?
Guth says farmers can be helped economically with favorable trade agreements with other nations. Pierson addressed the possibility of state or federal government agencies stepping in with financial assistance.
“Farmers are not looking for that, by any means,” he said. “We would rather the prices take care of our problem.”
Federal government assistance appears to be in the farming community’s near future. USA Today reported Dec. 8 that the Trump administration has earmarked $12 billion in one-time payments in the wake of this year’s tariff increases. The payments will focus primarily on farmers who grow crops such as corn and soybeans.
Stoller said he expects that most farmers will appreciate the payments because cash flow is currently tight. The payments, he added, will be issued in late February 2026, which will be just in time for farmers to pay income taxes.
“As far as effectiveness, I think the payments will possibly make up for 25% or so of the decrease in revenue from where commodity prices were a couple of years ago,” Stoller said.
Sorensen does not believe the one-time payments to farmers are sound policy and sees them as a “bailout” rather than a solution. He also considers the proposed amount insufficient, estimating that most farmers will receive about $100,000 while sustaining $500,000 in operating losses.
“This isn’t enough to sustain the industry,” he said. “Unless the administration wants to do this every six months.”
According to Illinois Department of Agriculture director Jerry Costello II, Trump’s first-term trade policies resulted in over $27 billion is U.S. agricultural export losses between mid-2018 and the end of 2019. While the $23.1 billion in federal assistance in response to the export losses provided farmers with a “Band-Aid,” it did not address the damage done to international trade relationships.
“Tariffs are crushing farmers again. Financial losses are worse this time around, yet the aid package is 50% smaller,” Costello added. “We’re seeing repeated devastation with greater losses than Trump 1. It defies logic.”
Rather than a bailout for farmers, Sorensen said, he would prefer that the Trump administration pursue sound policies that would lower input costs. He also believes the United States should pursue opening new global markets to reduce reliance on China.
“China has such a great relationship with Brazil and Argentina, which means it doesn’t have to come back to the United States to do business,” Sorensen said. “And who is going to suffer when that happens? It’s the American farmer.”
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