Written Testimony of Jay Funke — Co-Owner, Past President of Del Clay Farm Equipment, LLC

Summary

Written testimony of Jay Funke, co-owner and past president of Del Clay Farm Equipment, LLC and past chairman of the Iowa-Nebraska Equipment Dealers Association, before the Senate Committee on Small Business and Entrepreneurship for a hearing on Ag Business and the Rural Economy on January 14, 2026. The testimony is addressed to Chair Ernst and Ranking Member Markey. It states that the association reports large equipment sales down 26.5% through October of 2025 vs. 2024 and describes effects on dealers, including larger inventories and higher interest costs. It offers four suggestions: financing access for young entrepreneurs, support for rural communities under 10,000 people, increased insurance support and safety nets for farmers, and fair and reciprocal trade.

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   Written testimony of Jay Funke before the Senate Committee on Small Business and
                                    Entrepreneurship

                Co-Owner, Past President of Del Clay Farm Equipment, LLC

           Past Chairman of the Iowa-Nebraska Equipment Dealers Association

                      Hearing on Ag Business and the Rural Economy

                                     January 14,2026



Chair Ernst, Ranking Member Markey, distinguished members of the Small Business and
Entrepreneurship committee, thank you for the opportunity to testify on current conditions
of Ag Business, and the Rural Economy.

I grew up on a family farm, attended Loras College, came back and have spent 45 years in
Ag business, 39 years in ownership of 2 different Ag businesses in Edgewood, Ia.
Edgewood is a community in NE Iowa with a current population of 904 people. Our
business community has been very active, and been able to roll with the changes, working
together as a community, supporting local businesses, and a strong work ethic with
continuity in ownership of businesses.

I have been a member in the Iowa-Nebraska Equipment Dealers Association since 1992,
serving 10 years as a Board member, Chairman, and current position as Past Chairman.
Like most members of Rural communities, I have served on many committees and spent
over 30 years on Economic development in Edgewood. I have been around long enough to
experience highs and lows in the Ag business and our rural economy.

As our farmers’ income has dropped, and losses of around $200/acre are common, the
impacts can be felt in the small businesses supporting those farmers. Our association
monitors our member dealers and reports large equipment sales are down 26.5% through
October of 2025 vs. 2024. This decrease in sales causes other problems. We have larger
inventories than needed for the current sales volume, causing higher interest costs, which
can lead Dealers to dump inventory and take losses on equipment. Ultimately this creates
losses on the Income Statement that will be reflected in the balance sheet, and as that
happens, we stop buying vehicles or replacing tools, cut advertising, and the list goes on.

Rural small business owners all experience problems like these when the farmers they
depend on start to hurt. We have always offered financing to our customers, and the need
today is greater than ever, with increasing equipment costs making it harder for small
farmers to afford equipment.
We do have a strong business community in Edgewood, but we have lost our Ford
dealership, a restaurant, a realtor, and some other small businesses. It is important for
Rural America to keep these services alive, otherwise we will only continue to lose
population to our larger cities. I truly believe rural communities are vital to this country and
are great place to raise a family, but if we are going to keep them and the small businesses
in them alive, then they will need support from Congress and from the SBA. I want to thank
congress for the steps taken to extend the tax incentives to small businesses in the “Big
Beautiful tax bill”. Small businesses pour most of their earnings into growing and
improving their business. We do not see a return until we sell or allow the next generation
to take over.

I want to share some other thoughts, to improve Ag business and our Rural economy:

   1) Encourage young entrepreneurs and give them access to the financing they need to
      get their businesses started or to take over businesses that their communities
      already rely on. We need them to keep rural America operating and be able to
      support our farmers.
   2) Invest and/or support programs to improve and encourage businesses and people to
      stay in our rural communities, especially those under 10,000 people. In most cases
      a lot of the basic infrastructure is in place or can be improved easily if we just
      offered communities and small business owners the advice and support they need.
   3) Although not in this committee’s jurisdiction, increased insurance support and
      stronger safety nets for our farmers would go a long way to helping the rural
      communities they are a part of.
   4) Fair and reciprocal trade requested from those countries we are purchasing goods
      and services from. My brother and I also farm our family farm, and we sell our corn
      to all 3 grain elevators in the community as they do business with us. I think every
      farmer would rather have markets for their products than rely on government
      payments, but we must make sure those markets treat us fairly, and that our trading
      partners live up to the agreements they make with us.

1 percent of our population are Farmers; they produce food for the rest of this great country
and the world and create thousands of jobs in their communities from all of the support
businesses required in their quest to feed the world. I am proud to be a Farmer and an Ag
Business supporting farmers.

These are some ideas that I hope can be considered. I greatly appreciate the opportunity to
testify to this committee and look forward to any additional conversation.


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