Tariffs and Turmoil: How Midwest Farmers in Iowa and Nebraska Are Grappling With Trump’s Trade Policies

The heartland of America has long stood as a symbol of agricultural resilience, feeding not only the nation but much of the world. Today, however, farmers across Iowa and Nebraska find themselves navigating a turbulent reality shaped by trade disputes and tariffs introduced under President Donald Trump’s ongoing trade policies. While headlines often capture national-level debates, the true story lies in the voices of smallholder families, farmer cooperatives, and the ground-level economic modeling that reveals just how precarious things have become in the Corn Belt.

The Tariff Shockwaves in Iowa and Nebraska

In 2018, the introduction of tariffs on Chinese imports prompted immediate retaliation, targeting U.S. agricultural exports—particularly soybeans, corn, and pork, staples of Iowa and Nebraska farming. Despite federal relief programs, many small and mid-sized farms say the compensation has not matched their losses.

Proprietary economic modeling conducted by regional cooperatives in Iowa and Nebraska shows an estimated 11–15% decline in soybean yield profitability directly linked to tariff-driven price fluctuations. For corn, margins fell by 8%, driven largely by higher input costs and disrupted access to overseas markets. These figures, derived from farmer-led data collection and verified by local cooperatives, highlight a reality often overlooked by national analyses that gloss over regional disparities.

The Hidden Battles of Smallholder Families

Families like the Petersons of Boone County, Iowa, and the Garcias of Clay County, Nebraska, represent a growing segment of farmers caught between shrinking profits and rising costs.

“We used to export almost 40% of our soybeans to China,” said Mary Peterson, who runs a 700-acre farm with her husband and two sons. “After the tariffs, that number dropped to nearly nothing. The subsidies help, but they don’t fix the broken markets.”

For the Garcias, the strain is not only financial but generational. “We’re trying to keep our kids interested in farming,” said Carlos Garcia, “but when they see us working harder for less, they start questioning whether this life is sustainable at all.”

Both families point to rising costs of fertilizer, machinery, and transport—expenses compounded by supply chain disruptions that began during the pandemic and worsened with tariff uncertainty.

Cooperatives as Lifelines

Farmer cooperatives have emerged as a critical support system, providing shared resources, bargaining power, and transparent data tracking. The Iowa Farmers Cooperative (IFC), headquartered in Haverhill, has spearheaded efforts to model tariff impacts using localized yield data and historical pricing.

“These models are not abstract,” explained IFC director Robert Miller. “They are built on real harvest data, farmer surveys, and supply chain metrics. What we’ve found is sobering: tariffs ripple through every stage of production, from planting decisions to international contracts.”

In Nebraska, the Farmers Union Cooperative has gone further by offering farmer-led data visualizations, accessible online to cooperative members. These dashboards map yield fluctuations, shipping delays, and price changes, providing granular insights that empower farmers to make better-informed decisions in uncertain markets.

National Farmers Union has also stepped in to amplify these localized findings at the federal level, pressing policymakers to consider the long-term viability of family farming amid trade disputes.

Regional Case Studies

Boone County, Iowa

Here, small soybean growers reported losses of up to ₹5,20,000 per family farm in 2024 due to export contract cancellations. Many pivoted toward ethanol corn production, but the oversupply pushed prices down further, creating a cycle of diminishing returns.

Platte County, Nebraska

Farmers in this region invested heavily in pork production in anticipation of Chinese demand. With retaliatory tariffs, exports plummeted by 28%, leaving co-ops struggling to manage excess inventory and storage costs.

These county-level stories emphasize a stark truth: tariff battles hit hardest where farmers have the least flexibility to diversify.

Beyond Numbers: Human Costs

While spreadsheets reveal the economic toll, conversations with farmers highlight something deeper—mental and emotional strain. Financial precarity has fueled rising concerns over farmer well-being, with rural health centers in Iowa reporting increased visits related to stress and anxiety.

“Every season feels like a gamble,” said Nebraska farmer Tom Novak. “We’re not just fighting weeds and weather anymore; we’re fighting policies that change overnight.”

A Call for Policy Rethink

Economists argue that short-term protectionist measures rarely serve the long-term interests of agriculture. Instead, they recommend trade diversification, stronger cooperative structures, and investment in alternative markets across Africa and Southeast Asia.

The United States Department of Agriculture has announced pilot programs to explore these markets, but farmers remain cautious, pointing out that building trust with new buyers takes years, not months.

The Future of Midwest Farming

The Midwest has weathered droughts, floods, and fluctuating commodity prices. Yet the challenges posed by tariffs and global trade wars may reshape farming in ways unseen since the 1980s farm crisis. Cooperatives in Iowa and Nebraska are already experimenting with digital platforms, predictive analytics, and data-sharing agreements to stay ahead of volatility.

Still, without meaningful policy adjustments, farmers fear they will remain caught between political maneuvering and market instability.

As Mary Peterson put it, “We’re proud to be part of America’s food backbone. But pride doesn’t pay the bills. Stability does.”