Midwest Soybean Farmers Squeezed by Tariffs, Iran War

Rising costs, low prices, and global supply glut put financial strain on soybean producers

Apr. 13, 2026 at 4:34pm

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A composition of overlapping triangles and rectangles in shades of blue, green, and red, conceptually representing the financial pressures facing soybean farmers in the Midwest.Geometric abstraction captures the complex economic forces squeezing Midwest soybean farmers.Wahoo Today

Soybean farmers in the Midwest are facing a perfect storm of financial pressures, including high costs for fuel, equipment, and fertilizer compounded by the Iran war, tariffs, and a global supply glut driving down prices. Farmers like Doug Bartek in Nebraska are struggling to stay afloat as their operating expenses rise while soybean revenues remain low.

Why it matters

The challenges facing Midwest soybean farmers highlight the broader economic pressures impacting the U.S. agricultural sector. As costs for key inputs like fertilizer and fuel skyrocket, farmers are caught in a squeeze between high expenses and low commodity prices, leading to a cash crunch and rising bankruptcy rates. This threatens the viability of family farms and the long-term health of the nation's food supply.

The details

Soybean prices have been persistently low in recent years due to a global supply glut, driven in part by increased production in Brazil. Meanwhile, Midwest farmers' costs for land, equipment, seed, and other inputs have steadily risen. The Trump administration's trade war with China, a major buyer of U.S. soybeans, further depressed prices and disrupted export markets. Then the Iran war caused a spike in fertilizer and fuel prices, compounding the financial strain on farmers.

  • In April 2025, the Trump administration levied sweeping tariffs that sparked a trade war with China.
  • On February 28, 2026, the U.S. and Israel attacked Iran, severely disrupting global shipping through the Strait of Hormuz and driving up fertilizer and fuel prices.
  • On April 7, 2026, the U.S. and Iran agreed to a two-week ceasefire, but uncertainty remains over the future of the deal.

The players

Doug Bartek

A fifth-generation farmer in Nebraska who owns a 2,000-acre farm and is the chairman of the Nebraska Soybean Association.

Justin Sherlock

A soybean farmer in North Dakota and the president of the North Dakota Soybean Growers Association.

Chad Hart

An agricultural economist at Iowa State University who studies global soybean production and trade.

Paul Mitchell

A professor of agricultural and applied economics at the University of Wisconsin-Madison who studies farmer financial pressures.

Joseph Glauber

The former chief economist at the U.S. Department of Agriculture from 2008 to 2014.

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What they’re saying

“Our biggest struggles are our inputs, be it fertilizer, seed, chemical, parts. There has been so much drastic markup in all of these. And I just kind of feel like the farmer's kind of painted in the corner.”

— Doug Bartek, Farmer and Chairman, Nebraska Soybean Association

“A lot of producers are pretty nervous going into this year. It looks like we're going to have another year of negative returns.”

— Justin Sherlock, Farmer and President, North Dakota Soybean Growers Association

“There's just a liquidity cash crunch for a lot of them and they're just trying to figure out how to deal with everything.”

— Paul Mitchell, Professor of Agricultural Economics, University of Wisconsin-Madison

“When China has put on tariffs against the U.S. they've tended to buy then from Brazil or Argentina, largely Brazil. We're not nearly as dominant in the world as we used to be in terms of the global export market for soybeans.”

— Joseph Glauber, Former Chief Economist, USDA

“Facilities have been hit, like liquid natural gas plants. You are also looking at a big supply crunch in commodity chemicals, which are the inputs for crop chemicals.”

— Seth Goldstein, Senior Equity Analyst, Morningstar

What’s next

The U.S. and Iran are set to hold further negotiations in the coming weeks to determine the long-term status of the ceasefire agreement and the reopening of the Strait of Hormuz. This will be a critical factor in whether fertilizer and fuel prices stabilize for Midwest farmers heading into the 2026 growing season.

The takeaway

Midwest soybean farmers are caught in a perfect storm of rising costs and low commodity prices, exacerbated by trade tensions and the fallout from the Iran war. This financial squeeze threatens the viability of family farms and highlights the broader economic pressures facing the U.S. agricultural sector. Policymakers and industry leaders will need to find solutions to support farmers and ensure the long-term health of domestic food production.