Trump touts the economy in Iowa as protests roil Minnesota
U.S. president Donald Trump arrived in Iowa, Tuesday. He was seeking to shore up his support in a Midwestern battleground. An escalating conflict over immigration enforcement in Minnesota could drown out the economic message.
The Republican President, whose economic and immigration policies are lagging, will try to rally his rural supporters in an area that is hosting key congressional elections?in November. The mounting stress on the farm economy, and the delays in biofuel policies are testing the patience and renewable fuel producers. The Republican president is under pressure from voters to show that he's reducing costs. At the same time, the White House has been embroiled in an immigration enforcement crisis in Minnesota.
The death of 37-year-old U.S. Citizen Alex Pretti by federal immigration agents during a protest at Minneapolis on Saturday sparked widespread demonstrations, and the demand for an independent investigation.
Pretti is the second American fatally shot in Minneapolis this month by federal immigration agents, after Trump deployed thousands of armed masked agents. In rural Iowa, there is a mix of affordability concerns and 'growing anxiety' over high prices for farm equipment, fertilizers and other inputs. These concerns, combined with the uncertainty surrounding Trump's biofuels policy and trade with China threaten to undermine his support in the United States. farm belt.
Iowa is the largest corn, hog and ethanol producer in the United States.
Visit the rural heartland
Trump has won Iowa in all three of the previous presidential elections. Rural voters who had been his staunchest supporters now struggle to make ends met.
Lance Lillibridge is a 56-year old corn and beef farmer who plans to drive two hours from Vinton, Iowa to Des Moines to meet Trump. He said that he, like many other farmers, has been hard hit by the trade war between China and the rising cost of seeds and fertilisers.
"There will have to be some kind of action because right now, everything is terrible." Lillibridge, who describes himself as a Trump "for the majority," said that he had never been so cash-strapped in his entire life.
Trump will likely emphasize the support his administration has given to agriculture and renewable fuels. He is also expected to push his economic agenda to include making food, fuel, and household items more affordable.
Scott Irwin is an agricultural economist from the University of Illinois. He said that although Trump's policies on trade have hurt farmers, the government has eased regulation and kept fuel prices low to maintain support.
Irwin stated that Trump's support would remain strong as long as Trump, and the Republican Congress, are willing to provide special programs for a significant amount in crop losses. A closed /Ipsos survey that ended on Sunday revealed that 30% of Americans approved of Trump's handling the rising cost-of-living, while 59% were disapproving, including 9 in 10 Democrats and 1 in 5 Republicans. Trump's Republicans will defend a narrow majority in the midterm elections of November, which are usually when incumbent presidents lose seats. Iowa will see two fiercely contested races for two U.S. House of Representatives positions held by Republican Representatives Mariannette Meeks in a district south of Des Moines; and Zach Nunn whose district extends from Des Moines to the south. Analysts from nonpartisan groups believe that the U.S. Senate seats in Iowa will likely remain in Republican hands, despite the fact that Republican U.S. Senator Joni Ernst has decided to not run for re-election.
DIFFICULTY OF THE US FARM BUSINESS The strain in the U.S. farming industry has mushroomed, from unsold tractor to agribusiness firms reporting shrinking profits. Markets have been weighed down by abundant grain supplies, and production costs are still high. This has led to crop prices being weak for the third consecutive year.
The administration also delayed the final 2026 biofuel blend quotas to ease farmers' concerns. These quotas, also known as RVOs or renewable volume obligations (RVOs), are a result of the administration's decision to delay final biofuel-blending quotas for 2026. The tax guidance for the 45Z renewable fuel credits has not been finalized. And efforts to secure congressional approval for gasoline blended with 15% of ethanol year-round have also stalled.
These delays have been particularly damaging to the?biodiesel sector in Iowa. Iowa Renewable Fuels Association reported that the state's biodiesel production in 2025 was 244 million gallons, a 31% decrease from 2024. The state's plants are capable of producing more than 400 millions gallons per year at full capacity.
Monte Shaw, the executive director of Iowa Biodiesel Association, said that 2025 was a "real gut punch" for biodiesel. Lack of tax policy and low biofuel quotas have sent producers into a tailspin. Plants are hanging on by the fingertips, waiting for Washington to clarify. (Reporting from Kevin Lamarque, Jarrett Renshaw, Karl Plume, Trevor Hunnicutt, and Colleen Jenkins in Washington. Editing by Caitlin, Colleen, Ethan, and David Gregorio.)
(source: Reuters)
