The effects of the current agricultural downturn on Iowa’s economy go far beyond job losses at large, highly visible manufacturers like John Deere, Kinze Manufacturing and Tyson Foods, according to a new analysis from the Iowa Farm Bureau Federation.
A broader calculation of job losses shows that farm equipment manufacturers, food processors and other agriculture-related businesses have cut up to 11,400 jobs and cut $1.5 billion from the state’s overall economy, according to an analysis by Christopher Pudenz, the economics director. and research manager for the Iowa Farm Bureau. .
“Agriculture is the heartbeat of Iowa’s economy, and when agriculture struggles, that pain is felt across the state,” Pudenz said in a statement upon the report’s release Monday.
The group, which says it has more than 153,000 members, found that 23 agricultural production and related businesses in Iowa have cut 4,097 jobs through Sept. 18 as low crop prices and rising costs undermine farmers’ purchasing power. Deere alone has cut as many as 2,600 jobs in Iowa and on the Illinois side of the Quad Cities, where its headquarters are located.
The ripple effect of losing those jobs is resulting in thousands more job cuts, the Iowa Farm Bureau found. Ag’s economic downturn is also expected to cut $100 million in taxes for state and local governments.
This year’s farm income is expected to decline 4.4% from 2023, the U.S. Department of Agriculture said in September. That follows a year-over-year decline of 19.5% from 2022 to 2023, the USDA reported. The USDA will release a new farm income forecast on December 3.
Pudenz said the downturn is especially impactful in Iowa, where agriculture accounted for more than 22% of the state’s total economic output in 2022, according to a study commissioned by the Coalition to Support Iowa’s Farmers. Nearly one in five Iowans work in agriculture, agriculture-related industries and businesses dependent on those industries, supporting more than 385,000 jobs, the survey found.
More: With thousands of jobs already cut in Iowa, how deep will the decline in the agricultural sector go?
The analysis comes as U.S. Sen. Debbie Stabenow, D-Michigan, chair of the Senate Agriculture Committee, released a proposed farm bill on Monday, six months after the U.S. House Agriculture Committee released its own version. While Congress could agree on a new bill, it could also choose to extend the 2018 farm bill, which has already been extended a year beyond its 2023 expiration.
Iowa Farm Bureau President Brent Johnson said in a statement that farmers need a new farm bill that would outline agricultural support and policies.
“Farmers need guarantees as they try to balance economic uncertainty,” Johnson said.
A new farm bill “goes beyond agriculture and protecting our food supply; it also provides access to nutrition programs for families facing hunger, promotes conservation efforts and encourages innovation through research,” he said.
Donnelle Eller covers agriculture, environment and energy for the register. Reach her at deller@registermedia.com.
This article originally appeared in the Des Moines Register: Up to 11,400 jobs at risk during Iowa recession, study says
