Mike Allen at Axios:
The big picture: Mark Mueller — a northeast Iowa farmer and president of the Iowa Corn Growers Association — tells Axios that the current landscape is tougher than at any time since the 1980s farm crisis, when interest rates soared and exports plunged, triggering agricultural bank failures.Bankruptcies are rising. Lenders are becoming more reluctant to loan to farmers. "There's going to be fewer farmers next year than this year," Mueller says.
Farmers are grappling with a confluence of forces:
- Skyrocketing energy prices triggered by the Iran war. Diesel is up 60% from last year.
- Spiking fertilizer prices and shortages after Iran blocked shipments through the Strait of Hormuz. 70% of farmers say they can't afford the fertilizer they need.
- Disrupted export markets tied to President Trump's tariffs and Chinese import restrictions.
- Global drought and other weather pressures.
The farms and small towns of this region have traditionally been the GOP’s electoral backbone and its ideological heart, giving life to the party’s ingrained conservative ethic of hard work and self-reliance. Yet the farm economy on which much of the Midwest depends is undergoing a dramatic, apparently continuing decline. And in many places, Republican candidates are in jeopardy in this fall’s elections--a development that poses new dangers to GOP hopes of achieving majority status.
And even if many individual Republican officeholders survive on Election Day, there are indications that the farm crisis has cost the GOP a historically important opportunity to expand on its Reagan-era gains by taking some of the shine off Republicanism. In Iowa, for example, Republican Sen. Charles E. Grassley says that without the farm recession, “the Republicans would have a landslide victory in Iowa this fall. With it, there are major problems.”
