Farmers across the Midwest face severe financial strain as energy and fertilizer prices continue rising. Diesel, a critical input for farm machinery, has surged more than 25 percent since Jan. according to Department of Energy data. This increase directly impacts planting, irrigation and harvesting costs, threatening profitability for many small and medium-sized operations. Grain and livestock farmers report shrinking margins, with some considering reducing acreage for the upcoming season, a move that could cut corn and soybean output by as much as 10 percent.
The push for farmer relief faces strong headwinds from energy sector lobbyists. ExxonMobil and Chevron spent a combined $18.5 million on federal lobbying in 2025, with a significant portion targeting energy policy and regulatory frameworks. Their efforts focus on preventing price caps or export restrictions on natural gas, a key component in fertilizer production. This stance directly benefits the record profits of major energy producers but drives up farmers' input costs, increasing the expense of nitrogen and phosphate fertilizers by an average of 15 percent this year. CF Industries, a leading fertilizer producer, reported a 12 percent profit increase in its last quarter, benefiting from these elevated input prices.
Legislation designed to provide direct aid or energy subsidies to farmers remains stalled in both chambers. Sen. Chuck Grassley, R-Iowa, introduced the Farm Resilience Act, which included $5 billion in emergency grants for high energy costs and a temporary fuel tax holiday. The bill has not moved out of the Senate Agriculture Committee, chaired by Sen. Debbie Stabenow, D-Mich. The committee received more than $2.3 million in energy sector donations in the last election cycle.
Key Democrats and Republicans, including Sen. Joe Manchin of West Virginia, with significant campaign contributions from the oil and gas industry, have privately expressed concerns about market intervention. They argue that price controls would reduce domestic energy production, potentially worsening long-term supply issues. President Trump's administration has also emphasized deregulation to boost domestic energy output, aligning with industry goals over farmer subsidies.
The lack of legislative action means higher food costs for U.S. consumers. Farmers unable to absorb rising expenses will likely reduce planting or exit the industry, leading to tighter food supplies and potentially higher import reliance. This dynamic creates an environment where large agricultural corporations with greater capital reserves can consolidate land and production, further shifting the power balance in the food supply chain. The current stalemate shows the influence of energy lobbying on Capitol Hill, prioritizing industry profits over food security and farmer viability.
