How Trump's Tariff Policies Are Driving American Farmers to the Brink of Bankruptcy

The Greek Courier

Art: Anthony Machuca

When Donald Trump promised billions of dollars in bailouts to Minnesota farmers in response to his tariff policies against China, he resembled an arsonist pretending to be a firefighter. But this is his typical modus operandi. He acted the same way when he pulled out ICE agents from the streets of Minneapolis after they had murdered two innocent people. Trump's tariff policies are driving American farmers to the brink of bankruptcy, similar to how he is leading his country to the brink of civil war.

In a recent piece in apmoneywise, Mike Crisolago highlighted the stark contrast between the tense confrontations among protesters and ICE agents in urban centers like Minneapolis and the profound struggles faced by farmers in rural areas of Minnesota—challenges directly tied to the man they all helped elect. These farmers are battling soaring agricultural costs, which could reach $50 billion, alongside a significant surplus of crops that is driving down their incomes. Furthermore, the repercussions of Trump’s international tariff conflicts have raised alarms among U.S. agricultural experts, who warn that these issues could lead to a “widespread collapse” of farms and rural communities.

With the midterms a few months away, this somber message was underscored in a letter dated February 3, directed to the House Agriculture Committee, which included notable Minnesota lawmakers like Senator Amy Klobuchar and Representative Angie Craig.

“There are few tragedies greater than the loss of a family farm,” the letter poignantly articulated. It called for an honest acknowledgment of the severe challenges facing rural America and urged decision-makers to engage in meaningful discussions with the farming community to devise viable, long-term solutions.

Shortly after, Senator Klobuchar visited Mower County, which is slated to become a hub for an advanced agricultural research complex. There, she met with representatives from various Minnesota farming associations, including those advocating for the interests of soybean and corn producers. During her visit, Klobuchar addressed the significant economic toll imposed on local farmers by President Trump’s tariffs, emphasizing that a staggering one-third of Minnesota's agricultural output is linked to international exports. This includes China, which has historically been the leading purchaser of Minnesota soybeans, investing $1.7 billion in the commodity during 2024 before abruptly halting purchases last year in response to the escalating tariff conflict. Although China has agreed to resume buying, Klobuchar noted, “it’s still less than half of [what] it was last year,” highlighting the ongoing uncertainty.

Rodney Moe, a representative from the farming associations, issued a stark warning: “If we don’t have these markets, I don’t know what’s going to happen,” reflecting the gravity of the situation.

Sowing uncertainty for Minnesota farmers, the state famously known as the “land of 10,000 lakes” also boasts an agriculture industry that was valued at a remarkable $24.5 billion in 2023. The primary exports—corn, soybeans, and feed grains—together constituted over $9 billion in export revenue that year, all of which are now under severe threat due to Trump's tariff wars. 

Compounding the challenges posed by tariffs, a projected record yield of an astonishing 17 billion bushels of corn for the 2025 and 2026 seasons—deemed by a local agricultural economist to be “the record corn production ever in the U.S.”—drove prices down significantly. With an overwhelming surplus of crops and too few markets to sell them, farmers find themselves facing potential financial ruin. Nathan Collins, a Minnesota farmer, voiced the frustration of many: “Now you have to reevaluate what you're going to sell your crop for on the balance sheet. If you still have crops sitting in the bin or at the elevator, you just lost a lot of money.”

As V  points out, one glimmer of hope for many Minnesota corn farmers lies in the potential passage of federal legislation permitting the sale of E15—a blend of gasoline containing 15% ethanol derived from corn—nationwide year-round. Currently, only Minnesota and seven other states can sell E15 without seasonal restrictions, which raises the stakes for expanding domestic market opportunities. Klobuchar championed E15 as a crucial avenue for farmers, yet a promising bill aimed at broadening its sales across the nation failed to gain traction in January. Congress instead established an “E15 Rural Domestic Energy Council” tasked with formulating legislative solutions to address the pressing crisis confronting the nation’s farmers and refiners. Amanda Bilek, senior public policy director for the Minnesota Corn Growers Association, expressed disappointment, stating, “We had done our job in trying to get an agreement with a segment of the oil sector just to have the rug pulled out a little bit from under us.”

A national problem

Farmers throughout the United States are grappling with similar challenges. A report from the American Farm Bureau Federation published in November 2025 warned of “multi-billion-dollar export declines in some of our largest trading markets” and highlighted a troubling increase in Chapter 12 farm bankruptcies. Additionally, a separate January analysis predicted losses ranging from $60 to $210 per acre for essential crops such as rice, cotton, wheat, corn, and soybeans, estimating net losses exceeding $50 billion over the past three crop years. The Federation anticipates that production costs will further escalate in 2026, foreshadowing an even grimmer outlook for farmers nationwide.