By Jerry Hagstrom, DTN Political Correspondent and Chris Clayton, DTN Ag Policy Editor

OMAHA (DTN) -- A bipartisan group of former leaders of America's major agricultural commodity associations and biofuels organizations, farmer leaders, and former senior USDA officials sent congressional ag leaders a letter on Tuesday warning about the deteriorating state of the farm economy, stating there is a risk of "widespread collapse of American agriculture."

The group charged that Trump administration policies "have caused tremendous harm to U.S. agriculture" and are having long-term negative effects on the competitiveness of farmers and agriculture.

"Farmer bankruptcies have doubled, barely half of all farms will be profitable this year, and the U.S. is running a historic agriculture trade deficit," the letter stated.

The letter runs counter to the Trump administration's narrative that agriculture is on the precipice of "golden age" once some trade agreements start to kick in.

The signatories include past presidents and CEOs of the American Soybean Association, National Corn Growers Association, National Pork Producers Council, National Barley Growers Association, National Milk Producers Federation, US Grains Council, and Renewable Fuels Association; past directors of the Illinois and Nebraska Departments of Agriculture; and other farm leaders and senior agricultural policy experts.

The group's concerns reflect a dramatic reversal from the record farm export surpluses and farm incomes experienced just a few years ago. According to the letter, U.S. whole soybean exports have fallen from 47% of world market share in 2018 to just 24.4% today -- a 50% reduction -- while Brazil has gained more than 20% market share during the same period.

"There are few tragedies greater than the loss of a family farm, representing not just a loss of livelihood but a loss of a way of life for rural families," the leaders wrote. "And when American farmers suffer, the entire rural economy is impacted -- from schools, to churches, to Main Street businesses."

An analysis from the American Farm Bureau Federation last month cited crop farmers are looking at their fourth year of potential overall losses. The analysis shows farmers will enter the 2026-27 crop year facing accumulated losses exceeding $50 billion over the past three crop years. The report also noted USDA's Economic Research Service projects 2026-27 input costs will increase anywhere from 2.2% to 3.3% across main principal crops.

Costs of production are projected to range from $409 an acre for wheat up to $1,336 an acre for rice.

In their eight-page letter, the former agricultural executives identified multiple factors contributing to the crisis:

-- Increased farm input costs driven by tariffs on fertilizer, farm chemicals, and machinery parts.

-- Loss of export markets due to trade wars and withdrawal from trade agreements like the Trans-Pacific Partnership.

-- Weakening of international trade partnerships as traditional allies turn to other suppliers.

-- Disruptions to agricultural labor supply affecting dairy, fruit and produce, and meat processing.

-- Massive cuts to USDA staffing and agricultural research funding.

-- Reductions in foreign aid and domestic food programs.

The letter comes as the Purdue University-CME Group Ag Economy Barometer (AEB) Index fell in January. Half of the farmers who responded to the survey said their farm operations are worse off than a year ago. Looking a year ahead, 30% expect worse financial performance compared to 20% who expect better financial performance.

USDA also is expected to release $11 billion to commodity farmers at the end of the month under the Farmer Bridge Assistance (FBA) program. Agricultural leaders in Congress have been pressing for another $15 billion aid package as well.

"Farmers don't want government handouts -- they want markets," the letter emphasizes. "They want world-class research so that they can compete. They want their families and communities to have affordable health care services."

The group called on Congress to take immediate action with nine specific recommendations, including exempting all farm inputs from tariffs, passing legislation for E15 ethanol, passing Trade Promotion Authority, completing review of the U.S.-Mexico-Canada Agreement, and passing a new farm bill and farm labor reform.

The leaders who signed the letter also said they would be holding meetings with farmers to gather more input and urged Congress and others to take similar steps "to hear directly from farmers about the state of the farm economy, the causes of our current farm crisis, and the policy changes that are needed."

The letter added, "We can only hope rural America will survive the current tumult long enough for the administration, Congress and leaders of both parties to recognize the threat and find the temerity to work together on real solutions."

Also see, "Purdue: Farmer Sentiment Falls Sharply Over Ag Economy, Outlook for Exports," https://www.dtnpf.com/….

Jerry Hagstrom can be reached at jhagstrom@nationaljournal.com

Follow him on social platform X @hagstromreport

Chris Clayton can be reached at Chris.Clayton@dtn.com

Follow him on social platform X @ChrisClaytonDTN

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