A new economic analysis from Iowa Farm Bureau Federation released Monday shows the recent downturn in the agriculture economy has resulted in losses of up to 11,400 jobs and $1.5 billion in gross domestic product, as well as a $100 million loss to the state and local tax base.

Between Jan. 1, 2024, and Sept. 18, 2024, 23 Iowa businesses announced layoffs for 4,097 people working in production agriculture and adjacent industries.

“Ultimately, this starts with depressed incomes at the farm gate that have ripple effects on the Iowa economy,” said Christopher Pudenz, Iowa Farm Bureau economics and research manager. “For example, because farm incomes are down, farmers aren’t making the same machinery purchases they’ve made in previous years, which means manufacturers, suppliers and retailers slow down production and are forced to lay people off.”

Pudenz said agriculture’s share in Iowa’s economic output — which was 22% in 2022, according to a study by the Coalition to Support Iowa’s Farmers — strengthens the downturn’s effect on the state. Jobs in Iowa’s agriculture or ag-related industries total more than 385,000, or nearly 1 in 5 Iowans.

The U.S. Department of Agriculture’s September 2024 farm income forecasts farmers are expected to lose nearly a quarter of their income in just two years due to slumping commodity prices and high input costs.

Additionally, net farm income, a key measure of profitability, is projected to decline 4.4% from 2023, following a record year-over-year drop of 19.5% from 2022 to 2023.

To read the full analysis, click here.