Iowa Farm Bureau: Ripples of agriculture downturn could result in five-figure job cuts

Posted by Admin November 19, 2024 Jobs

The effects of the current agricultural downturn on Iowa’s economy go well beyond the jobs cut by large, highly visible manufacturers like John Deere, Kinze Manufacturing and Tyson Foods, according to a new Iowa Farm Bureau Federation analysis.

A broader accounting of employment losses shows farm equipment manufacturers, food processors and other ag-related businesses cutting up to 11,400 positions and slashing $1.5 billion from the state’s overall economy, according to an analysis by Christopher Pudenz, the Iowa Farm Bureau’s economics and research manager.

“Agriculture is the heartbeat of the Iowa economy, and when agriculture struggles, those pains are felt throughout the state,” Pudenz said in a statement accompanying the release of the report Monday.

The group, which claims more than 153,000 members, found that 23 Iowa farm-production companies and related business have slashed 4,097 jobs through Sept. 18 as low crop prices and rising expenses sap farmers’ buying power. Deere alone has cut as many as 2,600 jobs in Iowa and on the Illinois side of the Quad Cities, where it’s headquartered.

The ripple effect of losing those jobs is resulting in thousands more being cut, the Iowa Farm Bureau found. It says ag’s economic downturn also is expected to chop $100 million in taxes to state and local governments.

This year’s farm income is projected to decline 4.4% from 2023’s, the U.S. Department of Agriculture said in September. That follows a year-over-year drop of 19.5% from 2022 to 2023, the USDA reported. The USDA is slated to issue a new farm income forecast on Dec. 3.

Pudenz said the downturn is particularly 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 are employed in agriculture, ag-related industries and businesses dependent on those sectors, accounting for more than 385,000 jobs, the study shows.

The analysis comes as U.S. Sen. Debbie Stabenow, D-Michigan, chair of the Senate ag committee, released a farm bill proposal Monday, six months after the U.S. House ag committee released its own version. While Congress could reach an agreement on a new bill, it also could choose to extend the 2018 farm bill, which already has been extended a year past its 2023 expiration.

Iowa Farm Bureau President Brent Johnson said in a statement that growers need a new farm bill, which spells out agricultural support and policies.

“Farmers need assurances as they try to balance economic uncertainty,” Johnson said.

A new farm bill “extends beyond the farm and protection of our food supply; it also provides access to nutritional programs for families facing hunger, advances conservation efforts and spurs innovation through research,” he said.

Donnelle Eller covers agriculture, the environment and energy for the Register. Reach her at deller@registermedia.com.