Trump heads to Iowa amid growing farmer discontent: low prices and biofuel policy delays weigh on the agri-sector

57168
©

U.S. President Donald Trump will visit Iowa — a key agricultural state — against the backdrop of rising tension across the American farm belt. Weak corn and hog markets, high production costs, and delays in biofuel policy decisions are testing farmers’ support, Reuters reports.

The visit to the nation’s largest producer of corn, pork, and ethanol comes as the U.S. agricultural economy faces a deepening crisis. Farmers complain about prolonged low crop prices, rising seed and fertilizer costs, and uncertainty in trade and energy policy, which could undermine Trump’s support in rural areas.

According to farmers, the trade confrontation with China and higher input costs have significantly strained farm liquidity. Some producers expect the administration to roll out new financial support programs, including large-scale compensation payments.

The Trump administration is expected to emphasize support for agriculture and renewable fuels, presenting its broader economic agenda as a way to reduce prices for food, fuel, and consumer goods. At the same time, experts note that White House trade policies have hurt crop producers, although regulatory rollbacks and efforts to keep fuel prices lower have partially offset the impact.

Additional pressure on farmers comes from delays in biofuel policy. The administration has not finalized mandatory biofuel blending volumes for 2026 (RVOs) and has yet to complete tax guidance on 45Z renewable fuel credits. In addition, a key issue for corn growers remains unresolved — approval for year-round sales of gasoline blended with 15% ethanol (E15).

The consequences are particularly acute for Iowa’s biodiesel industry: in 2025, production fell by 31% to 244 million gallons, while full plant capacity exceeds 400 million gallons per year. Industry representatives warn that the lack of clear tax rules and low biofuel quotas have pushed producers to the brink of survival.

Overall, strain in the U.S. agri-sector continues to intensify — from unsold farm machinery to shrinking agribusiness profits. Polls show that most Americans are dissatisfied with the administration’s ability to curb rising living costs, creating additional political risks for Trump ahead of key electoral battles in rural states.

comments powered by Disqus