Midwest Soybean Farmers Squeezed by Tariffs, Iran War, and Rising Costs

Soaring input prices and low commodity prices put financial strain on family farms

Apr. 14, 2026 at 2:35am

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A minimalist illustration composed of overlapping triangles and rectangles in shades of blue, green, and red, conveying the financial pressures facing Midwest soybean farmers through an abstract, geometric visual metaphor.Geometric abstraction symbolizes the complex economic forces squeezing Midwest soybean farmers between high costs and low returns.Wahoo Today

Midwest soybean farmers are facing a perfect storm of challenges, including high costs for fuel, equipment, and fertilizer exacerbated by the Iran war, as well as lingering impacts from the U.S.-China trade war and persistently low soybean prices driven by global oversupply. Farmers are struggling to stay afloat as expenses rise while revenues remain stagnant, leading to concerns about the future viability of family farms in the region.

Why it matters

The financial pressures on Midwest soybean farmers have broader implications for the U.S. agricultural economy and food supply. Soybean is a major cash crop and export, and the struggles of these family farms could lead to further industry consolidation, reduced domestic production, and reliance on foreign imports - potentially impacting food prices and security.

The details

Costs for essential farm inputs like fuel, equipment, and fertilizer have risen sharply in recent years, compounded by supply chain disruptions from the Iran war. Meanwhile, soybean prices have remained low due to global oversupply, exacerbated by the U.S.-China trade war that opened up new export markets for competitors like Brazil. Farmers are being squeezed between these rising costs and stagnant revenues, leading to concerns about the long-term viability of many family-owned operations.

  • The U.S. and Israel attacked Iran on February 28, disrupting global fertilizer supplies and driving up prices.
  • In April 2025, the Trump administration imposed sweeping tariffs that sparked a trade war with China, a major buyer of U.S. soybeans.
  • On April 7, 2026, the U.S. and Iran announced a two-week ceasefire that included reopening the Strait of Hormuz, but the future of the agreement remains uncertain.

The players

Doug Bartek

A fifth-generation farmer and chairman of the Nebraska Soybean Association, who operates a 2,000-acre farm near Wahoo, Nebraska.

Justin Sherlock

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

Chad Hart

An agricultural economist at Iowa State University.

Joana Colussi

A research assistant professor in the department of agricultural economics at Purdue University.

Paul Mitchell

A professor of agricultural and applied economics at the University of Wisconsin-Madison.

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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

“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, Soybean Farmer

“If we look at global soybean production over the past several years, it continues to set record, after record, after record. There's been just large supplies globally, and that has led to depressed prices.”

— Chad Hart, Agricultural Economist

“The financial reserves need(ed) on a farm are much greater than they used to be. We're a bit more sensitive to the financial conditions these days because so much capital is being utilized within the farm business.”

— Chad Hart, Agricultural Economist

“When China decided to stop purchasing, we couldn't find enough other markets to replace those sales. We're still feeling the impacts today. When you look at where soybean exports are today versus where we would normally expect them to be, we're still running anywhere from 15% to 20% behind normal.”

— Chad Hart, Agricultural Economist

What’s next

The future of the ceasefire deal between the U.S. and Iran remains uncertain, and the long-term impacts of the war on global fertilizer supplies and prices are still unfolding. Farmers will be closely watching developments in the coming months as they prepare for the next planting season.

The takeaway

Midwest soybean farmers are facing a perfect storm of challenges, from rising input costs to low commodity prices, that are putting immense financial strain on family farms. These pressures have broader implications for the U.S. agricultural economy and food security, potentially leading to further industry consolidation and reliance on foreign imports if the situation does not improve.