WEST DES MOINES — Iowa’s agricultural economy is several years into a downturn, with net farm income falling 53% from 2022 to 2024 as record-high input costs, depressed grain markets and trade uncertainty put mounting pressure on farmers, rural businesses and communities, according to a new joint study released by the Iowa Farm Bureau Federation, Iowa State University and the Iowa Bankers Association during Iowa Farm Bureau’s Economic Summit. The study, 2026 Iowa Agricultural Outlook: The Pressure is Rising, finds that negative margins are increasing farmer financial vulnerability across the state.

Iowa’s crop farmers are facing a third consecutive year in which costs are generally outpacing prices. Crop input costs are expected to remain uncomfortably high due to broader economic uncertainty and ongoing conflicts abroad, adding further pressure to already-tight margins.

While today’s conditions do not yet mirror the severity of the 1980s farm crisis, both short- and long-term challenges loom large.

For Iowa row crop farmers, lower commodity prices and stubbornly high production costs are gradually tightening liquidity among mid- and large-size farms in 2026. Data shows the share of financially vulnerable farms has risen from 7.7% in December 2022 to 19% in December 2025 — though that share remains below the levels seen in the late 2010s.

“Despite multiple years of challenging economic conditions, Iowa farmers have shown remarkable resilience,” said Adam Gregg, president and CEO of the Iowa Bankers Association. “Through it all, Iowa banks continue to be important financial partners to the farmers they serve, providing access to credit and flexible terms to navigate today’s ag economy.”

Several Iowa livestock sectors have provided rare opportunities for positive returns, helping offset deeper losses in parts of the farm economy. The cattle market, in particular, has been one of the lone bright spots in Iowa agriculture, with record estimated monthly cattle feedlot returns in 2025.

Iowa farmers are on the front lines of trade disputes because of their reliance on commodity exports.

From 2025 to 2050, U.S. net exports of corn are forecast to fall slightly, while Brazilian net exports are expected to increase by nearly 20 million metric tons.

Click here: www.iowafarmbureau.com/ArticleFile/file/31e979c6-e8d1-4a2f-ab0a-ea90da4f3de9/2026%20Iowa%20Agricultural%20Outlook.pdf to read the full 2026 Iowa Agricultural Outlook: The Pressure is Rising study.