FT: US Grain Farmers Face Worst Crisis in Decades Due to Iran War

With the U.S. midterm elections about two months away, the UK daily Financial Times reported on the 24th local time that U.S. grain farmers are facing their worst crisis in decades triggered by the war with Iran.

The FT reported that as the Iran war has dragged on for half a year, surging prices for diesel fuel used in agricultural machinery and fertilizers have put U.S. farms in deep distress.

Grain prices had already been at low levels for several years, leading to a decline in farm incomes. This was compounded by the "trade war" declared by Donald Trump's second administration last year, which reduced grain exports, including soybeans bound for China.

Oil and fertilizer prices had already spiked following Russia's full-scale invasion of Ukraine in 2022.

John Hansen, president of the Nebraska Farmers Union (NFU), said the agricultural sector is experiencing its worst slump since the 1980s.

According to recent data released by the American Farm Bureau Federation (AFBF), assuming no government subsidies, farms growing nine major crops, including corn, are projected to face losses of 31 billion dollars—approximately 42.9 trillion won—this year, and about 44.3 trillion won next year.

Faith Parum, an economist at the AFBF, explained that the loss per acre (4,047 square meters) for corn producers will reach 181,000 won this year and increase to 231,000 won next year.

For soybeans, losses are projected at 111,000 won this year and 191,000 won next year.

Parum noted that next year will mark the sixth consecutive year of losses for the cultivation of most major crops in the United States.

The FT cited a recent poll by the newspaper showing that 53% of registered U.S. voters said their economic situation has worsened since President Donald Trump took office again in January 2025, analyzing that this could pose a challenge to the Republican Party's hopes of retaining control of the federal legislature.

Senator Thom Tillis (R-NC) said on the 24th, "Seventy-one days left [until the midterms] and there is no positive message we can take to the countryside right now. We haven't had one since 'Liberation Day' last year."

President Trump declared April 2, 2025, as "Liberation Day" when he signed an executive order comprehensively and sharply raising tariffs.

In June of this year, President Trump formally requested an additional spending bill of about 15.4 trillion won for economic relief to farmers, but farmer organizations argue that the support is insufficient.

Some of the measures taken by Trump to address rising food prices have sparked backlash from the U.S. agricultural community.

Last week, the Trump administration announced a 90-day tariff exemption on 300,000 tons of imported beef.

In response, some livestock farmers expressed outrage, calling it a "betrayal."

Pam Johnson, a farmer in northern Iowa and former president of the National Corn Growers Association (NCGA), said, "The [Iran] war has brought immense uncertainty to our farmers," adding, "It is projected that farmers will not make any money at all over the next two years."

According to the U.S. Energy Information Administration (EIA), the national average price of diesel, widely used as agricultural machinery fuel, rose to 7,554 won per gallon (3.78541 liters), higher than the 5,280 won per gallon seen before the Iran war.

Furthermore, hot and dry weather is expected to deal a blow to crop yields in some regions.

December delivery U.S. corn prices rose 10% this month to 7,142 won per bushel, marking the highest level since 2023.

A bushel is a volume unit equivalent to 35.24 liters, which generally corresponds to about 25.4 kilograms for corn.

In addition, prices for soybeans and wheat have also been on the rise recently.

Experts are expressing concern that inflation rates, which have already exceeded the Federal Reserve's target of 2%, could climb even higher.

Brian Choi, head of the Food Institute (FI), a research organization, predicted that food prices are certain to rise, noting that the impact—such as corn prices surging nearly 20% this year—will "ultimately reach consumers as well."

(Photo: Getty Images)
※ Please note: This article was translated by AI and may contain errors.