Feb 24, 2026
According to a recent letter signed by a bipartisan group of 27 former agricultural leaders, President Donald Trump’s economic policies risk triggering "a widespread collapse of American agriculture” (1).
The letter, addressed to the leadership of both the House and Senate Agriculture Committees, paints a grim picture: "The policies of this Administration have caused tremendous harm to the U.S. Agriculture. Farmer bankruptcies have doubled, barely half of all farms will be profitable this year, and the U.S. is running a historic agriculture trade deficit."
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Here’s how economic policies have impacted the nation’s food industries, and how it could affect your grocery bills.
Agriculture leaders say economic policies are wreaking havoc on farm industry
Per the letter signed by agricultural leaders, some of the Trump administration’s signature policies have created a perfect storm for the nation’s agricultural sector.
The ongoing trade war, in particular, is pushing foreign buyers away from agricultural exports. China accounted for roughly 40% of US soybean exports in 2024, but in the latter-half of 2025, these exports have dropped to less than 20%. And starting in October (traditionally the start of peak export season), the U.S. hasn’t shipped soybeans to China in five straight months. (2).
Tariffs are not only reducing revenue but also boosting costs for farmers. The letter highlights how Trump’s tariffs on fertilizer, farm chemicals and machinery parts have pushed up farm input expenses. Tractor maker John Deere said tariffs on steel and aluminium could cost the company $600 million in 2025, according to CNBC (3).
Trump's immigration policy is having an impact too. The administration's own Labor Department acknowledged in an October Federal Register filing that "the near total cessation of the inflow of illegal aliens" threatens "the stability of domestic food production and prices for U.S. consumers” (4).
The agriculture experts who signed the letter argue that these policies are creating the perfect storm for this vital industry and pushing many small and mid-sized producers to the brink of financial hardship. About 315 farms filed for Chapter 12 bankruptcy in 2025, 46% higher than the previous year and the highest level since the pandemic (5).
"Our farmers and ranchers can compete with the world, but they can't compete with the world with a chaotic set of policy circumstances," former chief executive of the National Corn Growers Association, Jon Doggett, told the New York Times (6).
Democratic lawmakers echoed this sentiment. “Farmers are struggling because of the administration’s tariffs: lost export markets, higher input costs and uncertainty,” Senator Amy Klobuchar said in a post on Threads (7). “We need to end the tariff chaos to keep family farms strong.”
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What farmers say will help fix the issue
In an effort to resolve the crisis, the 27 industry insiders are calling on Congress to step in and rein in some of Trump’s policies.
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The letter makes nine specific recommendations, including an exemption for farm inputs from tariffs, swift resolution of the trade war, extending the U.S.-Mexico-Canada Agreement for sixteen years as part of the review process, restoring funding for research and U.S. Department of Agriculture, and passing a new farm labor reform bill to ease the labor shortage.
It remains unclear whether lawmakers will take up the coalition's recommendations. What is clear is that ordinary Americans are already feeling the ripple effects every time they check out at the supermarket.
How this could impact your food bill
Faced with higher costs, it’s possible that food producers may pass some of the pressure onto consumers. For ordinary families already struggling with the affordability crisis, this could make things worse.
In 2025, food costs were already surging. Food inflation was 3.1% last year, compared to 2.7% for the overall Consumer Price Index, according to the Bureau of Labor Statistics (8).
Economist Samantha Ayoub doesn’t expect the tide to turn in 2026. “We will likely continue to see increases in both bankruptcy and farm closures, further straining the remaining farms – and the food, fiber and fuel supply chain for all Americans,” she says in a report published by the AFBF (5).
Whether lawmakers act or not, the strain on U.S. agriculture is already reshaping the market. For households, that could mean planning for price swings rather than expecting food inflation to ease anytime soon.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Energy.AGWired.com (1); Forbes (2); CNBC (3); Federal Register (4); Farm Bureau (5); The New York Times (6); @senamyklobuchar (7); BLS (8)
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Vishesh Raisinghani is a financial journalist covering personal finance, investing and the global economy. He's also the founder of Sharpe Ascension Inc., a content marketing agency focused on investment firms. His work has appeared in Moneywise, Yahoo Finance!, Motley Fool, Seeking Alpha, Mergers & Acquisitions Magazine and Piggybank.
