Iowa Farmers Squeezed by Tariffs and Fuel Costs — And They're Not Alone
A new Navigator Research report, based on focus groups with nearly two dozen Iowa crop and livestock farmers, finds widespread concern over tariffs, fuel prices, and market instability. Their concerns reflect a broader financial strain playing out across farms across America this fall.
Diesel costs hit multi-decade highs
Diesel prices have surged nationwide as harvest season begins. Mid-August prices reached their highest levels in over a decade, and diesel stockpiles are projected to fall to their lowest point in more than 20 years as global conflicts disrupt fuel supply chains. A July report from the Senate Joint Economic Committee found farmers spent $1.4 billion more on diesel during this year's spring planting season compared to last year — a 63% increase for several major crops.
In the Iowa focus groups, one farmer estimated it would cost $1,000 a day to run a combine during fall harvest.
“We’re just kind of still doing the same thing we’re doing, but the fuel prices are just killing us…because it’s double what we are accustomed to paying.” - Iowa livestock farmer
Tariffs add further pressure
Nearly all Iowa participants said tariffs have raised their costs and added uncertainty. Nationally, the American Farm Bureau Federation forecast in July that the country's crop farmers would end the year with roughly $31 billion in losses.
“As a whole, they’re not good for us. I mean our inputs always cost more because of all these tariffs, and there’s a good chance we sell less, export less of our products because of them. So, it hurts us on both ends.” - Iowa crop farmer
A separate controversy has emerged over a proposed 90-day plan to allow up to 300,000 metric tons of tariff-free foreign beef imports. Major industry groups — including the National Cattlemen's Beef Association and the American Farm Bureau Federation — have jointly warned the move could destabilize the domestic cattle market.
Fertilizer costs tied to global conflict
Fertilizer prices have also climbed sharply this year. Nitrogen (urea) prices spiked above $850 per metric ton in April — up 80% since February and the highest level since 2022 — as conflict-related disruptions in the Strait of Hormuz tightened global supply. The World Bank projects urea prices will rise nearly 60% for 2026 overall before easing in 2027.
A sense of powerlessness, but pride in the work
Regardless of these pressures, most Iowa farmers described farming as more than an occupation — a multi-generational way of life they have no plans to abandon.
“I think it’s important to know that most of us are multi-generational businesses and that we do everything we can to do it right and to do it safe. We’re doing a business that we’re going to pass on to the next generation. But food safety and environmental safety, there’s nobody who’s a better environmentalist than the American farmer.” - Iowa crop farmer
