Editor's note: This column originally appeared in the Iowa Bankers Association's spring quarterly magazine.

Uncertainty surrounding farm bill and trade disputes add pressure to crop and livestock income outlooks.

Everyone has seen the headlines: The Iowa ag­­ricultural economy is struggling. Farm incomes are depressed, ag manufacturers across the state continue to lay off workers, and uncertainty abounds. We have been in a cyclical downturn for several years at this point. 

Because agriculture is such an important part of Iowa’s economy, stress in the ag and ag-adjacent industries bleeds into other areas. After all, studies show that 1 in 5 Iowa jobs is in agriculture. The downturn has led to about 5,000 ag and ag-adjacent job layoffs reported to the State of Iowa’s WARN system.

Even though most ag and ag-adjacent sectors face stiff headwinds, there are some bright spots that warrant discussion. Proceeding sector-by-sector, I tease out the nuance.  

Outlook on row crops

Iowa ranks first nationally in corn production. During 2022, corn prices increased following Russia’s invasion of Ukraine and the resulting disruption ...