American farmers struggle from Trump’s tariffs, its affect on Arizona

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American farmers have long struggled with high production costs and low crop prices. But this year, there is even greater uncertainty in the fields.

China halted its purchases of all U.S. soybeans in May 2025, a retaliatory measure against President Donald Trump’s tariffs. Many U.S. farmers were left without their largest export market.

Additionally, tariffs imposed by the Trump Administration have driven up the costs of farm equipment, which have increased significantly. President Trump has considered providing American farmers with a $10 billion bailout.

Hoffman said the combination of rising costs and unstable markets has left many producers in a difficult position.

“It’s tough, they’re getting squeezed,” he said. “I thought it was tough being a state employee and working for the government. It’s tough being a farmer these days.”

He described the pressure as “two-sided.”

“They’re squeezed on costs, and the market for their products is challenged,” Hoffman explained.

Global conflicts and trade policies have pushed key input prices higher.

“A lot of fertilizer, evidently, is sourced from Ukraine and Russia, so the costs of fertilizer skyrocketed in 2022 and stayed up there,” he said. “Natural gas is a cost driver for fertilizer. We get fertilizer ingredients from Canada. So it’s, as usual, much of this is globally sourced, and it’s just out of favor right now. It costs a lot more.”

Tariffs have also contributed to higher equipment prices. Asked if the cost of farm machinery is easing at all, Hoffman didn’t hesitate.

“Absolutely not going down,” he said, adding that “to finance farm equipment is tough.”

On the export side, soybeans remain a key flashpoint. Hoffman called the U.S.–China soybean story an “interesting case study,” noting that U.S. exports have been “frozen or down pretty much ever since” the trade war began in 2017.

While a new agreement has China buying 25 million metric tons of U.S. soybeans a year, Hoffman pointed out that Brazil is slated to send roughly three times that amount.

“That’s not helping the industry at all,” he said.

Hoffman also highlighted how these pressures are reshaping livestock operations, with ranchers reducing herds and facing volatile beef markets. He said all of these forces together create a level of uncertainty farmers haven’t seen in years, even as consumers contend with higher prices at the grocery store for many staple foods.

Learn more about the story of Arizona’s local food and the dedication of the people who produce it. Learn how a farmer loses precious land to development, and experience the opportunities and obstacles inherent in our local food system with “The Story of Arizona’s Good Food.

Dennis Hoffman, Economics Professor, ASU

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