Politics

Gas Prices, Soy Exports and Cover Crops: How Changing Federal Policy Could Impact Illinois Farmers

Farmers and other leaders from Illinois’ agriculture industry say potential federal policy and funding actions could prove devastating.

Whether it be tariffs that make Illinois soybeans less attractive to China or cuts to funds that prop up things like rural firefighting services, conservation-minded farming techniques and tree assessments after major storms, Illinois farmers are worried.

“If federal support for programs like these go away, we’ll have fewer resources to pump into our rural and underserved Illinois communities,” Illinois Department of Natural Resources Director Natalie Phelps Finnie said.

Already, she told legislators during a hearing Tuesday[ED1] , a pause on federal grants and a lack of guidance from the White House about the future of programs in progress has “created chaos” for the agency and its partners.

President Donald Trump ordered a widespread freeze on spending that flows to states, and though courts have ordered the administration to lift the pause, there have been delays and there’s uncertainty about the ultimate resolution.

The head of the state’s agriculture agency, Jerry Costello II, said he believes Illinois is still hurting from tariffs implemented during Trump’s first term, with grain markets in Brazil and South America gaining to Illinois’ disadvantage, and he’s worried the latest tariffs on Canada, China and Mexico will further that.

“When you’re talking about Mexico, China and Canada, they account for 48% of our overall agricultural trade,” Costello said.

Costello also predicted that the price of gasoline will “start creeping up because of these tariffs. There is no faster way to impact consumers than through their wallets in the price of gasoline.”

Midwest refineries import crude oil from Canada as well as Mexico.

State Rep. Sonya Harper (D-Chicago), chair of the House agriculture committee, said she wanted to hear directly from farmers to get a handle on the impact of federal actions.

But state Rep. Charlie Meier (R-Okawville) said Illinois lawmakers should focus on what they’re able to control, rather than issues controlled by Washington, D.C.

“I hope that we look at it, respectfully, that we are not grandstanding and turning the agricultural committee into a political pawn,” Meier, a farmer, said, noting that even before Trump was elected, agricultural forecasts were predicting a tough 2025 for farmers.

Illinois cut $4 million in the current budget from Soil, Water and Conservation districts.

Eliot Clay, who leads the Association of Illinois Soil & Water Conservation Districts, said he doesn’t want to use scare tactics or get political, but said conservation districts are “already under tremendous pressure … if we lose even more resources, I’m scared generally, for where this could go.”

Contact Amanda Vinicky: @AmandaVinicky | [email protected]

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