116 3rd St SE
Cedar Rapids, Iowa 52401
Ag downturn results in more than 4,000 Iowa job losses
Those losses could lead to over 11,000, a Farm Bureau analysis estimates
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Large agriculture-related employers in Iowa cut their workforces by more than 4,000 jobs this year as farm income continues to decline, according to state data.
A new Iowa Farm Bureau Federation analysis of that data shows the actual impact of those reported loses could translate into more than 11,000 jobs disappearing, with a negative economic impact to the state that totals more than $1 billion.
“Ultimately, this starts with depressed incomes at the farm gate that have ripple effects on the Iowa economy,” said Christopher Pudenz, economics and research manager for the group.
Those who employ at least 100 people are required to notify the state of plant closings or mass layoffs. Several companies — including John Deere, Tyson Foods and Kinze Manufacturing — said they would shutter facilities or reduce output this year.
Those moves come amid a two-year downturn in farm income, following record income in 2022. The downturn has been driven by lower corn and soybean prices and higher costs for fertilizers and other supplies.
Total farm income in the United States still is projected to exceed the average for the past 20 years, according to the U.S. Department of Agriculture. But that projection can disguise the income for a typical farmer because a relatively small number of large farms capture most of the revenue.
In recent years, about 7.5 percent of the country's farms netted about 85 percent of the total income, according to Tom Vilsack, the nation's agriculture secretary.
"When we see farm income numbers, we have to understand that it doesn't necessarily translate to every farmer," he said in August at the Farm Progress Show in Boone.
Major employers who notified Iowa Workforce Development of layoffs this year include:
- John Deere, which manufactures large agricultural equipment, announced layoffs that totaled more than 1,600 at its Ankeny, Davenport, Dubuque and Waterloo facilities. The company also plans to temporarily suspend production in Ottumwa next month but will retain its employees.
- Tyson Foods closed its pork processing plant in Perry and eliminated about 1,360 jobs.
- Smithfield Foods closed its ham boning facility in Altoona, which had about 320 employees.
- Kinze Manufacturing, which makes crop planters, grain carts and tillers, reduced its workforce by about 190 in Williamsburg.
- Pure Prairie Poultry abruptly folded in October and reported 132 job losses in Charles City. That also led to the waste of more than 1 million chickens.
The Farm Bureau, which is a powerful advocate for agriculture, found that 23 large employers in the ag industry or that contribute to that industry — such as tire-maker Firestone — notified the state of layoffs this year.
The group commissioned Decision Innovation Solutions, of Urbandale, to estimate the economic effects in Iowa. That analysis estimates that total job losses might be up to about 11,400, with total income losses of about $830 million and economic losses of $1.5 billion.
Comments: (319) 368-8541; jared.strong@thegazette.com
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