(Radio Iowa) – A recent Iowa Farm Bureau report shows the Iowa ag economy has seen a down trend from 2023 into 2024 that lead to farm incomes dropping by nearly 25 percent. I-F-B’s economics and research manager Christopher Pudenz says there are some things that could turn the farm economy around. He says getting away from Farm Bill extensions to passing a new five-year bill is one. “One of those aspects that is in that farm bill that’s really important for farmers here in the state of Iowa is the crop insurance programs that are funded in part by the Farm Bill,” he says. Pudenz says the safety net it provides takes some of the uncertainty out for farmers.

“The vast majority of acres for both corn and soybean farmers here in the state of Iowa are covered under crop insurance. That you know really does help during a year like this, when prices are depressed compared to previous years, or like when those folks up in northwest Iowa had all the flooding this spring and wiped out all those acres,” Pudenz says. He says there are some bright spots going forward, including the international export market. “We are looking to have a pretty strong here in terms of corn exports, the beef market remains strong. Iowa is fourth for cattle on feed, and it’s looking like some of those revenues in that in that industry might be shifting to some of those cow calf folks,” he says. “The hog industry, after having a pretty rough stretch there 18 months or so has had a better summer and fall and is looking to have a better 2025.” Pudenz says some of those areas could get farm incomes up a again.

“If farmers have, you know, higher incomes, they can, they can start buying machinery again. And then those manufacturers can start buying, you know, tires from their tire suppliers. Just kind of kick start the whole ag and ag adjacent economy,” Pudenz says. Republicans took back the White House and the Senate in the recent election and that can also impact the Ag economy. Pudenz can’t say yet what that impact will be. “It’s just too early to tell. We don’t know who is going to be the U-S-D-A Secretary yet. We don’t have an announcement about U-S-T-R (US Trade Representative), eagerly awaiting those announcements as we go forward here,” he says.

Pudenz says these factors are all important as the I-F-B analysis shows the negative impact on the state’s economy from the downturn is more than one- and-a-half-billion-dollars.