Farmers Challenged by Persistent ‘Cost-Price Squeeze’ Dynamics

By Gordon Arbuckle Jr.

The 2025 Iowa Farm and Rural Life Poll, conducted by Iowa State University Extension and Outreach Sociology, highlights ongoing economic and policy challenges faced by Iowa’s farmers. The annual survey, which gathered responses from nearly 950 farmers statewide, provides insights into farmers’ perspectives on the ups and downs of specialized commodity production.

“Prices of agricultural commodities such as corn and soybeans are highly volatile, and while the costs of inputs such as seeds and fertilizer tend to rise when prices are high, they are slow to decline when crop prices drop,” said J. Arbuckle, director of the farm poll, extension sociologist and Henry A. Wallace Chair for Sustainable Agriculture at Iowa State University. “This puts farmers in a stressful ‘cost-price squeeze’ situation. This year’s survey examined farmers’ feelings about that and related dynamics.”

Key Findings from the Survey Include:

Rising input costs and profit margins. Nearly all farmers agreed or strongly agreed that the cost of inputs — such as seeds and chemicals — seems to rise faster when profit margins are higher. Additionally, 88% agreed that profit margins on corn and soybeans are eroded by land rents and input costs more quickly than in the past, underscoring persistent financial pressures in row crop production.

Economic uncertainty and risk. The survey found that 85% of farmers agreed or strongly agreed that the boom-bust cycles of commodity production are hard on farmers, and 69% sometimes feel they have little control over farm profitability. Additionally, 67% agreed that heavy reliance on corn and soybeans contributes to financial risk, while 60% reported feeling overly dependent on purchased inputs.