Report
American farmers squeezed by Iran war and trade tariffs
American farmers are facing rising costs and lost export markets due to the Trump administration's tariffs and the war against Iran, according to an analysis by Responsible Statecraft. The war has disrupted energy and fertilizer trade through the Strait of Hormuz, while billions in emergency aid have mainly benefited large farms. The outlet calls for a diplomatic end to the war and a reassessment of tariffs.
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The analysis notes that agricultural exports to China fell 66% in 2025, and the USDA announced nearly $14 billion in additional payments for the 2025 crop year after an earlier $12 billion round proved insufficient. Diesel prices reached a record $6.28 per gallon in early October, an almost 70% increase since the war began in February, while fertilizer prices rose between 10% and 50% over the past year due to disruptions in the Strait of Hormuz.
Total farm-sector debt was forecast at approximately $605.1 billion in September 2026, a nearly 5% increase over 2025. The article argues that repeated bailouts conceal policy costs and that large agribusiness benefits disproportionately, leaving smaller farms with less room to absorb losses.
It concludes that Washington should pursue a diplomatic end to the war and rethink tariffs that have raised input costs and dragged down exports, rather than offering more emergency payments.
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