Tariff Impacts on Farmers Cloud 2026 Planning

Farmers across the Midwest and Great Plains say tariff impacts on farmers are forcing painful decisions as planning for the 2026 growing season accelerates. Rising input costs, unstable export markets, and shifting trade policy have pushed many operations into survival mode, according to agriculture leaders speaking during a national video press conference.

The event, organized by Tariffs Cost US, brought together farmers from Iowa, Montana, and Kansas who described how tariffs imposed since April 2025 continue to reshape planting plans, delay investments, and squeeze already-thin margins.

Since last year, across-the-board tariffs ranging from 10% to 50% have driven the average U.S. tariff rate to 16.8%, the highest level since 1935. Farmers say the timing could not be worse as they commit capital months, and often years, before harvest.

Falling Prices Meet Rising Costs

Aaron Lehman, a fifth-generation Iowa farmer and president of the Iowa Farmers Union, said tariff impacts on farmers show up daily in lower commodity prices and higher input expenses.

“We’re seeing falling prices for what we grow and higher prices for fertilizer and other imported inputs,” Lehman said. “That combination is devastating.”

According to Iowa State University estimates, corn in Lehman’s region sells 44 cents below the cost of production. Soybeans sell for $1.30 below production costs. As a result, farmers lose money on every bushel they grow.

At the same time, Lehman said years of work building overseas markets are unraveling. Foreign buyers now view U.S. farmers as unreliable suppliers due to trade volatility. Many buyers who shifted to South America during earlier tariff disputes never returned.

“That damage doesn’t go away in one season,” Lehman said. “It lasts for years.”

Expansion Plans Stall in Montana

In Montana, rancher Ben Peterson said tariff impacts on farmers have made risk management nearly impossible. Peterson operates a diversified ranch producing cattle, sheep, wheat, barley, and hay.

Volatile commodity markets and rising costs dominate every planning conversation. Even when Peterson sells locally, global price swings determine his earnings.

Input costs continue to climb. A respiratory vaccine for calves rose from $3.50 to about $6 in just over a year. Equipment prices remain elevated, while parts are harder to find and more expensive.

Because of that uncertainty, Peterson said his operation has paused expansion plans, delayed equipment purchases, and postponed infrastructure upgrades.

“When you’re planning for the coming year, you’re committing capital long before you know where prices will land,” Peterson said. “Right now, the risk is simply too high.”

Related Article: Food Traceability Push Accelerates Ahead of FSMA 204 Deadline

Tariff Impacts on Farmers Hit Exports Hardest

Kansas Farmers Union Executive Director Nick Levendofsky said export-dependent crops face the sharpest consequences from tariff impacts on farmers.

Kansas producers rely heavily on global markets for wheat, soybeans, and grain sorghum. When tariffs trigger retaliation, prices drop quickly, and contracts become harder to secure.

Levendofsky said economists project 2026 operating costs could rise 4% for corn and 6% for soybeans, exceeding recent USDA estimates. Fertilizer, chemicals, equipment repairs, and fuel remain elevated, with tariffs adding new pressure.

Grain sorghum illustrates the risk. Prices have fallen below $3 a bushel, and some grain elevators now warn farmers they may not accept the crop next year.

“Farmers are price takers, not price makers,” Levendofsky said. “Higher food prices do not mean farmers are making more money.”

Rural Communities Feel the Strain

Beyond individual farms, speakers said tariff-driven uncertainty ripples through rural economies. Delayed machinery purchases hurt manufacturers. Scaling back inputs affects local suppliers. Family farms struggle to bring the next generation into the business.

Lehman said chaotic trade policy discourages innovation and long-term thinking, replacing it with short-term damage control.

“Farmers can handle down markets,” he said. “What we can’t manage is constant unpredictability.”

Calls for Predictable Trade Policy

Despite criticism, farmers emphasized they support fair trade enforcement when applied strategically. However, they said blunt tariff tools fail to address core issues such as dumping, labor standards, and currency manipulation.

Speakers urged Congress to reclaim a stronger role in trade policy and push for stability before more damage occurs.

“Tariffs are tools, not toys,” Levendofsky said. “Farmers need predictable trade policy and stable markets to plan responsibly for 2026.”

As planting decisions near, farmers warned that continued uncertainty will limit production choices, investment, and long-term viability across U.S. agriculture.