By Jamie Martin
In early 2025, Midwest agriculture faced severe challenges due to global conflicts and trade wars. These issues hit row-crop farmers hard, pushing many toward bankruptcy.
The region's economy suffered as states like Nebraska and Iowa saw their GDPs drop by 6.1%—the largest decline in the nation.
Nationwide, farm bankruptcies rose sharply. The first quarter saw 259 filings—more than any full year since 2021. The cause? Soaring supply costs and declining prices for corn, soybeans, and wheat.
“A lot of producers who have cattle, this has been a really good year for them,” noted Abygail Streff of the Nebraska Farm Bureau. Meat prices remained a rare bright spot in the farm economy.
Fertilizer costs soared amid global unrest. With supply chains disrupted by sanctions on Russia and conflicts in the Middle East, farmers had to produce more just to break even.
In contrast, the Southeast saw stronger economic growth. Alabama, Arkansas, and Mississippi benefited from profitable poultry and egg industries. However, even there, small row-crop farmers faced high costs and shrinking profits.
Arkansas saw near-record farm bankruptcies, worsened by climate impacts like low water levels on the Mississippi River, making transportation costly.
The Southeast also gained from booming real estate and tech industries. States like Florida, North Carolina, and South Carolina recorded GDP growth due to housing demand and population influx.
Business leaders remain cautious about tariffs and immigration policies under the administration, fearing higher costs and labor shortages.
Still, Southeastern states led growth, while the Midwest struggled under the weight of trade wars, high input costs, and falling crop prices.
Photo Credit: gettyimages-eugenesergeev
Categories: National