A new study from the Iowa Farm Bureau, Iowa State University, and the Iowa Bankers Association—titled 2026 Iowa Agricultural Outlook: The Pressure is Rising—says Iowa’s farm economy continues to face mounting financial pressure. The report shows net farm income dropped 53-percent between 2022 and 2024 as high input costs, low grain prices, and trade uncertainty continue to squeeze farmers.
According to the report, Iowa farmers are facing a third consecutive year of costs outpacing prices. Iowa’s dominant crops, corn and soybeans, are especially dependent on export markets. Their production costs have increased 37% and 36%, respectively, also due to machinery charges as well as seed, chemical, and fertilizer expenses.
The share of financially vulnerable Iowa farms has increased from under 8-percent in late 2022 to 19-percent by the end of 2025. Since farmers rely on yearly operating notes to run their operations, this financial pressure leaves less room for weather, market or policy surprises.
According to an ISU survey, 40% of respondents expect Iowa land values to decline over the next year, while 82% expect land values to increase over a five-year timeframe, reflecting both near-term pressure and longer-term confidence in Iowa farmland.
On a more positive livestock note, farmers had record monthly cattle feedlot returns in 2025, but strong demand and pricing, combined with low inventory, have driven up replacement costs for steers and limited farmers’ ability to grow their herds.
While not yet mirroring the severity of the 1980s farm crisis, researchers say that both short- and long-term challenges loom large. Inflation, tariffs, trade, labor, the Farm Bill, the Iran War, screwworm all add to uncertainty and risk and its impact on profits making it harder to plan.
In 2024, Iowa ranked second among all states in total commodity export value at $13.7 billion, underscoring the importance of strong, reliable trade agreements for farmers and the markets they serve.
As agriculture remains one of Iowa’s largest economic drivers at one-fifth of the state’s annual GDP, researchers say the downturn is affecting not only farmers but also rural businesses and communities that depend on agriculture. Researchers emphasized the importance of the study helping to quantify what farm families are experiencing and why Iowa’s agricultural economy matters to every Iowan.