U.S. administration officials say tariff revenue is benefiting farmers, but recent data from the field suggests a more complex outcome. According to the January North Dakota State University Trade Monitor, tariffs on agricultural inputs imposed under President Donald Trump's International Emergency Economic Powers Act generated US$958 million in revenue through October. More than half of that amount, US$530 million, came from farm machinery, followed by agricultural chemicals at US$273 million, fertilizers at US$110 million, and seeds at US$44 million.
Despite these figures, the NDSU analysis found that the revenue collected was modest when set against overall production costs. The report concluded that U.S. farmers and input suppliers absorbed higher costs than the value of tariff revenue returned to the sector.
Kansas farmer Nick Levendofsky said tariffs and trade uncertainty are complicating farm planning. According to him, tariffs increase input costs while also contributing to lower commodity prices. "Even before tariffs, input costs were already high. Fertilizer, seed, chemical, equipment, fuel, and land costs remain elevated," Levendofsky said during a press call focused on 2026 planning. "Tariffs add another layer of cost at a time when farmers are trying to plan months or even years ahead."
Levendofsky, who is also director of the Kansas Farmers Union, said higher projected costs for inputs such as fertilizer could push total crop production costs above last year and beyond current USDA projections.
President Trump has argued that tariffs will deliver long-term benefits by opening markets and supporting trade negotiations. American Farm Bureau President Zippy Duvall expressed doubts about this approach. Referring to a 2025 meeting with the president, Duvall recalled telling Trump that farmers favored trade rather than tariffs. "My comment to him was, 'We pray to God that you're right,'" Duvall said.
Trump has also linked tariff revenue to direct support for growers. When a US$12 billion farmer assistance plan was announced in late 2025, he said the aid was made possible by tariff income. Federal data shows that the Department of Homeland Security collected US$287 billion in customs duties, taxes, and fees during calendar year 2025, up 192% from 2024.
However, farm groups argue that assistance payments do not offset recent losses. On Jan. 15, 56 agricultural organizations warned Congress that economic pressures are threatening farm viability and called for additional support.
Tariff revenue flows into the federal treasury and can only be allocated by Congress. Under Section 32 of the Agriculture Act of 1935, USDA can access up to 30% of prior-year customs receipts, but no more than US$350 million can be used for direct farmer payments or disaster programs. As a result, the scope for distributing tariff revenue to farmers remains limited.
Farmers report delaying investments and adjusting crop choices as trade uncertainty carries into 2026, highlighting the link between tariff policy, planning, and risk management.
Source: FarmProgress
