American farmers struggle with China trade and bankruptcies thanks to high costs

Growing up on a cattle farm in Yell County, Arkansas, alongside many other generational farmers, I learned early on how price swings and economic uncertainty could affect a family business.  

Unfortunately, thanks to former President Joe Biden’s disastrous economic policies, farmers across America are faced with rising input costs, low commodity prices and high borrowing costs. There’s no doubt that it’s been a tough time for America’s farmers and ranchers, which is why I’m working to get them the assistance they need.  

Earlier this year, I was proud to support the major farm bill reforms led by my fellow Arkansan and Chairman of the Senate Agriculture Committee, Republican Sen. John Boozman; this legislation was part of our Working Families Tax Cut. Unlike previous farm bills, which didn’t have nearly enough “farm” in them, the Working Families Tax Cut contained provisions to directly assist farmers and free up additional funding by eliminating waste, fraud and abuse.  

Yet, these measures won’t kick in until 2026. Furthermore, many farmers have already booked this year’s crop, meaning they won’t benefit from any recent increases in commodity pricing.

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Here’s the bottom line: America’s farmers need help — now.  

In my home state of Arkansas, for instance, our farmers are set to lose hundreds of dollars per acre on their soybean, corn, cotton and long-grain rice crops this year alone. The situation has gotten so bad that Arkansas cash crop receipts are now projected to fall by $617 million in 2025. 

Adding to these challenges for Arkansas farmers, the contrast between the steep cost of inputs (such as seed, fertilizer and diesel) and the commodity prices that farmers receive for their crops is at its highest level in 25 years. Put differently, input costs are too high and revenues are too low for many farmers to turn a profit, or at the very least, keep their businesses afloat. Unfortunately, the costs have caught up with too many Arkansas farmers; in the last year, among all southern region Chapter 12 bankruptcies (a classification specific to family farms and fishermen), one in four were filed in Arkansas.

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America’s farmers also play a critical role in our consumer economy, which is essential to the security of our homeland. After all, food security is national security. Our adversaries would love nothing more than to see generations of farmers wiped out by economic hardship.  

In recent months, soybean farmers have been unfairly targeted by communist China. This is particularly difficult for Arkansans, given that soybeans are grown in 41 of Arkansas’ 75 counties on thousands of farms across some 3.3 million acres in our state. While I welcome the announcement that communist China intends to purchase 12 million metric tons of soybeans this year — and 25 million metric tons every year for the next three years — we ought to keep in mind President Ronald Reagan’s old Cold War approach: trust, but verify.

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I have spoken with President Donald Trump directly about the difficulties and hardships that farmers and ranchers in Arkansas and across America are facing. Without a doubt, Trump keeps them at the top of his mind and close to his heart. Now that the Schumer Shutdown has finally come to an end, we can get back to work providing relief to our farmers that will bridge the gap between now and when the Working Families Tax Cut provisions kick in next year.  

Our farmers and ranchers must have the necessary assistance and support to get through to the next season. But just as importantly, they must be able to continue growing, harvesting and operating for generations to come. 

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