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Farmers to receive funds from American Relief Act
Southeast Iowa Union offers audio versions of articles using Instaread. Some words may be mispronounced.
FAIRFIELD – The past year was one of ups and downs for farmers, as they saw higher input costs but also strong demand for their products.
Iowa State University Extension and Outreach Farm Management Specialist Paul Martin, who covers 12 counties in Southeast Iowa, said farm income was down compared to other years because of the rising cost of fertilizer, land and feed. The area was also hurt by the drought that was especially severe in August and September. Martin said this affected much of the Midwest, and he heard from farmers in Indiana who said they were dealing with a drought, too.
The drought meant that corn and soybean production suffered, which also hurt farm income. Martin said the one saving grace is that demand for grain remained high. The latest report from the World Agricultural Supply and Demand Estimates came out on Friday, Jan. 10, and it showed that U.S. production of corn and beans was lower than what was expected a month ago. However, Martin said the silver lining in the report is that grain prices went up, a reflection of high demand.
“Even though we set records for corn and beans in the U.S., we didn’t produce as much as we thought,” he said. “But the export market ticked up like we all thought it would, and the ethanol market is chugging away.”
Farmers got some good news over the holidays when they learned that the U.S. Congress had passed the American Relief Act of 2025, which includes $10 billion in economic assistance for farmers. Martin said he wants farmers to be patient because it will take time for their local Farm Service Agency to administer the program before any checks can go out to farmers.
“This is what Congress signed before they left for Christmas break, and these are payments for crop producers dealing with the market downturn,” Martin said.
Under the act, farmers can receive $42 per acre of corn and $29.50 per acre of soybeans. Cotton farmers are receiving $80 an acre.
The beef industry has been a bright spot in the ag economy locally, Martin added. For young people interested in finding a career in agriculture, getting their foot in the door with livestock is a great way to start. Martin said the state has organizations catered specifically to young people who want to get into agriculture and livestock.
“This is Iowa. Why wouldn’t you want to have livestock?” Martin said. “We have resources here for successful livestock operations. There are barriers to starting out in ag production, and it’s capital, so some of these organizations help people get some cash accumulated so they can purchase things. It doesn’t have to be purchasing farmland. It can be cash for leasing farmland on a short-term basis to get started that way.”
Martin said there are a couple of important meetings coming up that people in agriculture should know about.
Ottumwa hosts a Cornbelt Cow-Calf Conference every year, and this year’s event will run two days, from 4-7 p.m. on Friday, Jan. 24 and again from 8 a.m. to 3 p.m. on Saturday, Jan. 25 at the Bridge View Center. Martin said this is a terrific conference for anyone in the beef industry because of the large number of beef industry professionals who will come to speak, and the 60-some vendors there from beef-oriented support industries.
Iowa State University in Ames will host a Farm Transitions Conference on Feb. 6-7 at the Gateway Hotel. Martin said the conference is about how to pass on a farm from one generation to another, whether through a blood relative or otherwise. That program is being sponsored by the Beginning Farmer Center.
“There is quite a lineup of speakers from all different areas concerned with younger generations of farm management and ownership of farms,” Martin said.
Martin mentioned another great resource for farmers is ISU’s Ag Decision Maker website, which can be found at extension.iastate.edu/agdm. Martin said it’s got a spreadsheet where farmers can put in their farm finances to see how their bottom line will be affected in various scenarios.
“It’s got information on current events, hot links to all kinds of important things, videos and webinars,” Martin said.
Call Andy Hallman at 641-575-0135 or email him at andy.hallman@southeastiowaunion.com
