Farmers have continued to grapple with elevated costs for agricultural inputs like seed and fertilizer, a trend the Trump administration says it is examining as part of a broader push to stabilize the farm economy. The increase in input costs has been driven by several compounding factors over the past few years, including global supply chain disruptions, energy market volatility tied to the war in Ukraine, and persistent inflation in the fertilizer sector. Seed prices have also risen as technology fees, biotech traits, and production costs continue to climb.
Soybean growers remain particularly strained in this environment. The American Soybean Association says farmers are now facing what could become a third consecutive year of losses in 2025, reflecting the combination of lower market prices, rising operating costs, and tightening margins. Recent futures trends and university extension estimates show that breakeven soybean prices in many regions now exceed projected market returns, especially for growers paying high cash rents or dealing with elevated interest expenses.
Speaking at the White House, President Trump said he intends to offer further relief by eliminating several environmental regulations he argues have contributed to the rising cost of farm machinery. He pointed specifically to the regulatory burden on equipment manufacturers, particularly those producing diesel engines that must comply with emissions standards such as EPA’s Tier 4 requirements. Trump said his goal is to reduce those costs and encourage companies like John Deere (DE.N) to bring down equipment prices for farmers.
“Farming equipment has gotten too expensive, and a lot of the reason is because they put these environmental excesses on the equipment, which don’t do a damn thing except make it complicated,” Trump said.
A spokesperson for John Deere responded by expressing support for federal efforts to help farmers manage their costs, saying the company is “doing all we can to help U.S. farmers reduce input costs.” Deere has reported higher equipment prices in recent years due to increased manufacturing, steel, and technology expenses, which have contributed to strong financial performance but also added pressure on producers already facing higher operating costs.
Trump also said he has asked China’s President Xi Jinping to increase the country’s recently negotiated soybean purchase commitments. China is historically the largest buyer of U.S. soybeans, though its purchases fluctuate based on feed demand, competition from Brazil, and geopolitical considerations. “I think he’s going to do more than he promised to do,” Trump said, suggesting additional sales could provide meaningful price support for U.S. growers.
During Trump’s first term, the administration delivered about $23 billion in aid to producers affected by retaliatory tariffs and broader trade uncertainty. This year, farmers are set to receive nearly $40 billion in government payments, a near-record figure driven by ad-hoc disaster aid and economic support programs that have buffered producers from low commodity prices and weather-related losses.
Still, analysts warn that current financial support levels are not expected to continue indefinitely. The Food and Agricultural Policy Research Institute at the University of Missouri projects that net farm income could fall by more than $30 billion in 2026 as government payments decline and crop prices remain soft. Higher interest rates, historically elevated production costs, and shrinking working capital margins are also factors expected to tighten financial conditions for farmers over the next two years.
As producers look toward 2025 and beyond, many are watching for signs of improvement in global demand, clarity on trade policy, and developments in machinery pricing. Farm groups continue to emphasize the need for predictable support programs, stronger market access, and long-term policy solutions that address both input cost volatility and the financial risks producers face heading into the next growing season.
