Around 11,400 Iowans could lose their jobs, state faces $1.5B economic loss due to ‘sharp downturn’ in agriculture

Posted by Admin November 20, 2024 Jobs

Around 11,400 Iowans could lose their jobs, state faces .5B economic loss due to ‘sharp downturn’ in agriculture

DUBUQUE, Iowa (KCRG) – The Iowa Farm Bureau Federation (IFBF) estimates losses in the agriculture industry could cause up to 11,400 Iowans to lose their job and a $1.5 billion reduction in statewide economic activity.

An IFBF economic analysis found U.S. net farm income dropped by nearly 25% since 2022 due to “slumping commodity prices and stubbornly high input costs.”

“Because farm incomes are down, farmers aren’t making the same machinery purchases they’ve made in previous years. That means machinery manufacturers who are selling less new equipment have to lay people off, which means that the suppliers and vendors who provide parts to those manufacturers also slow down production and lay people off,” explained Christopher Pudenz, IFBF economics and research manager.

According to Iowa’s Worker Adjustment and Retraining Notification (WARN) database, 23 agriculture or ag-related businesses have laid off 4,097 Iowans, as of September 18.

“These layoffs here in the state are estimated to lead to a $100 million reduction in state and local tax revenues. Those are things that help build roads, help build bridges, help fund schools. Those are revenues that are important for our communities,” said Pudenz, who also noted the layoffs have reduced statewide economic activity by $647.5 million.

The layoffs also mean families are budgeting tighter, investing less in the local economy, or moving from the community altogether.

“Those people stop buying as much gas at the local gas station because they’ve relocated. Those people stop buying food at the local restaurants, and stop buying shirts at the local boutique,” said Pudenz.

IFBF’s analysis also encouraged lawmakers to pass a new farm bill to give farmers “assurances as they try to balance economic uncertainty,” said Iowa Farm Bureau President Brent Johnson in a statement.

“A farm bill extends beyond the farm and protection of our food supply,” noted Johnson. “It also provides access to nutritional programs for families facing hunger, advances conservation efforts and spurs innovation through research. If a new farm bill isn’t passed, many critical programs will face significant interruptions.”