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

Growing up on a cattle ranch in Yell County, Arkansas, along with other generations of farmers, I learned early how price fluctuations and economic uncertainty can affect a family business.

Unfortunately, thanks to former President Joe Biden’s disastrous economic policies, farmers across America are facing rising input costs, low commodity prices, and high borrowing costs. There’s no doubt it’s been a difficult time for America’s farmers and ranchers, so I’m working to get them the help they need.

Earlier this year, I was proud to support major farm bill reforms led by my fellow Arkansan and Republican Senator John Boozman, Chairman of the Senate Agriculture Committee; This legislation was part of our Working Families Tax Cut. Unlike previous farm bills that didn’t have enough “farms” in them, the Working Families Tax Cut included provisions that would directly help farmers and provide additional funding by eliminating waste, fraud, and abuse.

However, these measures will not come into effect until 2026. Moreover, many farmers have already booked this year’s crop, meaning they will not benefit from any recent rise in commodity prices.

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The bottom line is this: America’s farmers need help — now.

In my home state of Arkansas, for example, our farmers stand to lose hundreds of dollars per acre on soybean, corn, cotton and long grain rice crops this year alone. The situation has gotten so bad that Arkansas’ cash crop revenues are expected to drop by $617 million in 2025.

Adding to these challenges for Arkansas farmers is that the gap between the high costs of inputs (like seed, fertilizer, and diesel) and the commodity prices farmers receive for their products is at its highest level in 25 years. In other words, input costs are too high and incomes too low for many farmers to make a profit or at least keep their businesses afloat. Unfortunately, the costs were beyond the budget of too many Arkansas farmers; Last year, among the entire southern region’s Chapter 12 bankruptcies (a classification specific to family farms and fishermen), one in four were recorded in Arkansas.

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America’s farmers also play a critical role in our consumer economy, which is vital to the security of our homeland. After all, food security is national security. Our enemies 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 especially difficult for Arkansans, given that soybeans are grown on thousands of farms across our state’s approximately 3.3 million acres in 41 of Arkansas’ 75 counties. While we welcome the announcement that Communist China plans to purchase 12 million metric tons of soybeans this year (and 25 million metric tons each year for the next three years), we should also keep in mind President Ronald Reagan’s old Cold War approach: trust, but verify.

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I spoke directly with President Donald Trump about the challenges and difficulties faced by farmers and ranchers in Arkansas and across America. No doubt Trump keeps these top of mind and close to his heart. Now that the Schumer Shutdown is finally over, we can get back to work providing relief to our farmers, bridging the gap between now and when the Working Families Tax Cut provisions kick in next year.

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

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