The Iran War Tax on Virginia Farmers

Virginias farmers are once again being sacrificed on Trump’s altar of stupidity and foolishness.  His Noble Great Mightiness’s war has already cost the lives of thousands in the Middle East, 13 of which are American service men and women.  In treasure every week, the war costs American taxpayers tens of billions of dollars.  Americans are also paying at the gas pumps and in grocery stores.  The defense department just presented a $200 billion reapers bill to Congress.  

Virginia’s farmers will pay additional costs as well. Not only in the rising costs of fuel and fertilizer but in sons and daughters.  Rural Americans are overrepresented in our armed forces.  Close to 45 percent of those in uniform come from counties like Louisa.

Didn’t Trump know it’s planting season.  Virginia farmers must decide what to plant this year.  Corn or soy or both.  Decisions about spending capital on new equipment must be made as well.  The soil must be tilled, the land prepped for seed. Yet, uncertainty abounds because of the war.  The confused and contradictory messages coming from the administration are unhelpful as to the war’s objectives, and most importantly, its end point. The feeds the uncertainty for farmers across Virginia and the nation.  It seems that while Iran is losing the war militarily, it is winning the war politically, strategically.  Hope and hubris are not war plans.

While this administration postures and dithers and twirls about like whirling dervishers, the supply of nitrates for fertilizer remains plugged up in the Persian Gulf, unable to make the passage through the Strait of Hormuz, that strategic strait of water on Iran’s southern shores.  Fertilizer prices have jumped as a result, on average about 20 percent.  It will take months to fix the fertilizer supply chain disruption caused by Trump’s chaotic war.  

Even if the war should end today, perhaps it’s too late for the farmers who need to make purchases now, or bet wrong earlier.  Soy doesn’t need nitrated based fertilizers, corn does.  Farmers may not take the risk of planting corn and go with soy instead.  That, however, will create a surplus of soy, thus lowering the price per bushel.  Can’t win either way.

That’s not all, because of this questionable war of choice, Trump cancelled his state visit with Xi of China.  China is the largest importer of soy in the world and last year not one American grown soybean was bought by China in retaliation for Trump’s punitive, and in some instances illegal, tariffs.  Virginia farmers lost tens if not hundreds of millions of dollars in exports because of Trump’s actions.  Virginia exports over a billion dollars’ worth of farm products to China. Not anymore. The announcement of the cancelled meeting caused the price of soy to drop.

It’s pain at the gas pumps.  We’ve all been to the gas station and noted the rise of gas and diesel prices.  Not fun paying $3.99 a gallon for gas and over $5 for diesel. They won’t be going down anytime soon.  Not with the Strait of Hormuz closed for the indefinite future and Trump threatening to put boots on Iranian ground.  

I did some research on what it cost in gas or diesel to plant and grow corn and soy, from seed to market.  Purdue University has some pretty good charts and tables that show the costs at each step of farming those crops.  There are at least 14 phases, I learned, taken in sequence to prepare the ground, plant the seeds, weed the fields, harvest the crops, and get them to market.  Most require tractors or combines or other farm vehicles.  

Basically, according to these Purdue University tables, to plant 300 acres or corn and 300 acres of soy, a farmer would use approximately 3655 gallons of fuel.  Broken down per acre, that would be $5.94 gallons per acre.  Of course there are variables like soil conditions, age of equipment, etc, that determine individual costs.  Diesel now cost about $5.59 per gallon (I didn’t deduct the taxes farmers are exempted from).  That comes out to almost $20,000 in diesel costs.  In prewar prices, it comes out to almost $13,000.  That’s a seven-thousand-dollar war tax on Virginia farmers.  Yes, it is a war tax. 

Did not Trump, his Noble Great Mightiness, this genius of all things, not see this coming?  And his equally impressive “We negotiate with bombs” Secretary of War, did he not see the potential consequences of the closure of the Strait of Hormuz?  Fools, the lot of them.

Because of Trump’s strategic failures, Virginia’s farmers are left with footing the bill for higher fertilizer costs, collapsing soy markets, and staggeringly high fuel costs at a critical time in the planting season.  

How long can Virginia’s farmers survive with this type of love from Trump? Blind obedience he demands.  ‘Suck it up,’ he says; ‘be patriotic,’ he says; ‘it’s only temporary pain,’ he says. Last year Trump authorized the payment of $30 billion in farmer bailouts because of his tariff fiasco.  This year he is already demanding that Congress pass a farm bill, immediately. He’s turning farmers into bailout junkies.

Another bailout is coming, a bribe to his “Farmers for Trump” tribe.  He thinks he can buy their silence and acquiescence.  He’s right it appears, but some are starting to see the light, it seems.  Not only is he bankrupting hard working farmers, he’s also sending many of their sons and daughters into harms way.  His uber patriotic sons and daughters never deigned to serve.  Hell, they wouldn’t be caught dead in uniform.  Barron isn’t running down to the recruiting station.  No, he was just named to the board of directors of a new company.  Another Nepo baby enriching himself and missing the wars, while our kids fight the wars. 

Virginia Farmers: A Case to Vote Democratic

This past Saturday at the Fall Fiber Festival and Montpelier Sheep Dog Trials near Orange, Virginia, something remarkable happened.  During the afternoon sheep shearing demonstration, the 70 something farmer from Louisa, teared up when describing how he came to raising sheep and learning how to shear them.  He paused, wiping tears from his eyes, sheepishly apologized.  He had heart surgery last year, he said.  The crowd in the tent was silent, . . . .then a booming gruff, male voice, said, ‘No apology necessary.’  He paused, ‘in fact more people in this country need heart surgery.’  Applause erupted in the crowded tent.

I don’t know the politics of the farmer shearing the sheep, I don’t know the politics of the man comforting the farmer, I don’t know the politics of the crowd, and I certainly don’t know the politics of the sheep.  It was a moment of vulnerability, and the response was compassion, a common humanity.  

The man with the gruff voice called out the heartlessness of our partisan divide, the hate mongers, the primal chest pounding in some quarters.  The farmer then got a 50-pound sheep out of the pen, rassled him into position, and started to shear her with traditional shears.  Impressive for anyone, much less a 70-something farmer who recently had heart surgery.   

Farming is not for the faint of heart.  My wife’s side of the family were Kansas wheat farmers starting in the 1920s.  Her mom was one of 12 kids, the first one arriving at 16, the last at 46.  Her mom remembers the dust, the jack rabbits, and the wheat.  She left when she could.   They worked hard, took second jobs to make ends meet. Alas, the farm was sold in the 2003.

Let me snatch your mind back from the precipice of agrarian nostalgia and sentimentality and bring you back to reality.

Americans have long been fascinated by the imagery of a yeoman farmer clearing the fields and tilling the soil.  Hard work, independence, self-sufficiency were the supposed hallmarks of America’s rural farmers.  American Historian Richard Hofstadter called it the “agrarian myth,” arguing that the “more commercial” America became, “the more reason it found to cling in imagination to the noncommercial agrarian values.”  Adding, that “the American mind was raised upon a sentimental attachment to rural living….  The agrarian myth represents a kind of homage that Americans have paid to the fancied innocence of their origins.”  Farmers, Hofstadter wrote, are businessmen, first and foremost.

During several past national election seasons, “Farmers For Trump” road signs dotted Louisa County.  I always thought the imagery of the word “farmer” was meant to evoke the ‘agrarian myth’ of good honest living, hard work, self-sufficiency, independence and somehow attaching it to a man who has never had a callous from working with his hands, never used a shovel, much less an axe.  Who has probably spent more cash on manicures than many farmers have paid for their tractors.

Trump’s policies hurt farmers, to include those in Louisa County.  His tariff war, especially his war on Beijing, is bankrupting farmers across the country.

Here are the ground truths.  

Virginia’s top agricultural export countries in 2022 were China, Canada, Venezuela (go figure), and Taiwan in that order.  Virginia farmers did close to $1.5 billion business with China.  Canada came in at a distant second with $370 million.  Exports are crashing to these countries because of Trumps policies. 

China buys 60 percent of the global supply of soybeans.  This year, however, they have bought ZERO soybeans from American farmers.  So, 60 percent of the potential Virginia’s and Louisa County’s soybean sales, gone, evaporated, zilch, in the flick of a social media post.

Because of Trump’s tariff war with China, Argentina, Paraguay, and Brazil are now China’s biggest suppliers of soybeans. According to the latest figures I have, Virginia harvested 21.6 million bushels of soybeans in 2023 and that jumped in 2024 to 26.4 million bushels, most destined for export markets, primarily China. This years harvest is at risk of being unsold.

Louisa in 2022 had 8058 acres of soybeans under cultivation.  At 44 bushels per acre, that amounts to 354,552 bushels.  Assuming that the same number of approximate acres are being grown today, at today’s market value that come out to about $3.6 million.  A potential loss of $3.6 million to Louisa farmers if it is left unsold. Net cash income for Virginia and Louisa farmers is dropping because of Trump’s policies.

Crashing commodity prices and massive loss of export buyers is why Trump is promising a farmer bailout.   More free cash handouts to loyal farmers.  This worked during his first term when Trump bailed out farmers to the tune of billions of dollars because of failed tariff wars.  They voted for him again in droves. Why?  I don’t know. Makes no sense.

The White House recently proposed a $38 to $50 billion bailout for America’s farmers.  That’s about $16k per farmer.  I know it won’t be disbursed equally across the board, but it is a bailout for the row crop farmers who are losing export business because of Trump’s shortsighted and counterproductive policies.  

In a supreme act of irony, Trump wants to use tariff dollars – basically a consumption tax Americans like you and I pay — to fund the famer bailout.  Picking my pocket to give free cash to his farmer voting base.  Problem is, Trump can’t just reach into the Treasury and take the money, like a personal piggy bank.  He needs Congress to authorize the funds.

Farmers voted for Trump for a variety of reasons, one being they thought he is a good businessman.  Well, you got screwed…. again.  Time to get beyond the culture wars, hate mongering, and bullshit rhetoric of who is and who is not a real American.  

 According to government stats analyzed for a 2024 Politico article titled Did Trump or Biden deliver more for farmers?  The answer may surprise you,  “Biden has been better for farmers than Trump.  Net farming income has actually gone up since the Democrat entered the White House.  On average, net farm income has totaled $165 billion between 2021 and 2023, compared to $94 billion between 2017 and 2019.  Farm income reached a record high of nearly $189 billion in 2022.”

The 2022 Census of Agriculture Louisa County Profile, a U.S. Department of Agriculture publication, supports Politico’s analysis.  According to the profile, net cash farm income in Louisa County increased 2269 percent (yes, 2269) between 2017 and 2022.  The market value of products sold increased 143 percent over the same period.  Mostly, Louisa’s 452 farmers did well under Biden, but many threw away these Biden gains made after Trump’s first term mistakes, exacerbated by Trump’s thoroughly horrible mismanagement of the pandemic response, by helping to elect Trump to a second term.  100 days into his second term Trump later needs to bailout farmers once again. Enough, no?

I think I made a good economic case that voting for Trump is bad for business. Like sheep, he is herding farmers in order to fleece them. He isn’t much better in most measures regarding democracy and rule of law as well. Please vote for Abigail Spanberger for Governor this November, and in the mid-terms in 2026, help throw out 5th District representative John McGuire so Congress can do its constitutional duty to reign in Trump’s dash toward autocracy and bankrupting America’s farmers.  A vote for Democrats is a vote to return to prosperity.