By Blake Jackson
Wisconsin agricultural leaders are urging farmers to prepare for continued challenges as trade tensions and market volatility are expected to persist into another difficult year.
At the Wisconsin Agricultural Outlook Forum held at the University of Wisconsin-Madison, economists and industry representatives discussed mounting financial pressures on farms and strategies producers are using to adapt.
Steve Deller, professor of agricultural economics at UW-Madison, said shifting trade policies and tariffs introduced during this administration have created deep uncertainty across the sector.
“It’s undermining confidence in terms of prices for both exports and imported inputs,” Deller said at the forum. “We’re not sure what the prices are going to be because we don’t know what are the tariffs, and then how much of those tariffs are going to be passed down to the consumer, the farmer or the food processors.”
Deller warned that uncertainty often leads lenders to tighten credit, which could further strain farmers. “Farming is highly dependent on access to credit,” Deller said. “If there’s a lot of uncertainty in what’s happening to prices and export markets, bankers are going to start to get a little bit more conservative.”
Paul Mitchell, also a UW-Madison ag economist, said Wisconsin corn growers are projected to lose $1.50 per acre in 2026, while soybean producers could face losses of $3.40 per acre. “Cash flow has become a serious issue for many Wisconsin farms. You can really see that in the data,” Mitchell said at the event.
While federal aid, including the $12 billion Farmer Bridge Assistance program, has helped stabilize finances, Mitchell cautioned against overreliance. “Government payments help, but they don’t solve this high cost, low price problem we’re facing,” he said.
Export challenges were also highlighted. Jeff Schwager of the Wisconsin Agricultural Export Advisory Council noted ongoing tariff uncertainty. “People still want the product. But what they’re trying to do is get us to take the responsibility for any uncertainty so that they can continue to supply it,” Schwager said during the forum.
Some producers are strengthening direct connections with overseas buyers. Will Hsu of Hsu’s Ginseng Enterprises said digital outreach has been essential. “There’s millions of customers who are not going to come to the U.S., but they still want to know about this product,” Hsu said, noting the use of subtitled farm videos to reach Asian markets.
Photo Credit: gettyimages-shotbydave
Categories: Wisconsin, Government & Policy