Republican lieutenant governor nominee Derek Wulf, who faces possible foreclosure on his farm, told conservative voters in Urbandale he is refinancing his debt as he struggles with the same economic headwinds plaguing so many Iowa farmers.
At a meeting of the Westside Conservatives Club on Wednesday, July 22, Wulf, a state representative who owns a farm in Hudson, said family farms are all just trying to “survive.”
“LG was never on my agenda,” Wulf told the group at the Machine Shed Restaurant. “Farming is on my agenda. But the biggest reason that I’m standing here is for that exact reason. Because if we don’t change this thing, family farms are going to disappear, folks. They already are.”
In May, WCF Financial Bank filed a foreclosure petition against Wulf in Black Hawk County District Court — roughly a month before he was asked to be the Republican nominee for lieutenant governor.
Wulf has also faced legal action from three different groups this year seeking payment on unpaid accounts totaling more than $330,000.
One case was dismissed and sent to mandatory mediation in March. And judges in two other cases issued default judgments against Wulf — one in April and one in June. A default judgment is issued when a defendant does not respond to a lawsuit.
Lahn’s campaign manager, Paul Cordes, said in a July 16 email to the Des Moines Register that “all of the debts to creditors have been paid in full” and Wulf is in the midst of refinancing his farm. The campaign did not say who paid those debts.
“Representative Wulf began refinancing his farm earlier this year and expects the process to be completed in the near future,” Cordes said. “Like many Iowa farmers, he has faced rising costs and tight margins, and this matter will be resolved through the refinancing process.”
Lahn won the Republican nomination for governor in an upset victory over U.S. Rep. Randy Feenstra in the June 2 primary election.
The campaign had to pivot quickly and pick a lieutenant governor candidate before the June 13 state convention.
Lahn announced Wulf as his running mate June 12.
When asked, Cordes did not say whether the campaign was aware of Wulf’s financial situation before selecting him, instead saying that “we do not believe a farmer refinancing his farm is a disqualifier for public service.”
Wulf refinances farm, pays down debts
The debts outlined in the foreclosure case appear to reach $4 million, according to an experienced Iowa bankruptcy attorney who reviewed the public case file on behalf of the Register.
That includes about $3.5 million in personal and business loans, as well as about $584,000 from an overdrawn and charged-off checking account. A lender can charge off an account after failing to collect a debt, writing it off as a loss.
The Lahn campaign declined to confirm or contradict that assessment of Wulf’s finances.
That level of debt would not be unusual for farms facing foreclosure, attorneys told the Register.
Chapter 12 bankruptcy protections, which were designed for family farmers, allow debtors owing up to $12.5 million to restructure their debts and repay what they owe.
In 2025, U.S. farm bankruptcies spiked 46% to 315, and in Iowa, they more than doubled to 18.
A hearing in the Wulfs’ foreclosure case is scheduled for Aug. 4.
In the leadup to the foreclosure case, three groups took legal action against Wulf this year seeking payment on unpaid accounts.
One case was dismissed and sent for mandatory mediation.
A second case, filed by Heartland Co-op, sought about $149,000 in unpaid bills. It ended with a default judgment filed against Wulf on June 19. The court record does not indicate whether the judgment in that case has been satisfied, but Cordes said “all of the debts to creditors have been paid in full.”
In the third case, a Sioux County-based swine company called Four County Pig Placement, Inc., sought to recoup about $182,000 in losses after it alleged Wulf did not pay for two shipments of feeder pigs.
The company filed suit in February. In April, after Wulf did not respond in person or in writing, a judge issued a default judgment against him.
But the company alleged in a June 18 court filing that Wulf’s bank “had no funds” it could garnish to recoup the judgment against him.
“Defendant has made no effort or attempt to pay the debt owed to plaintiff,” the filing says. “Plaintiff has made diligent efforts to locate assets of the defendant, including income and other bank accounts, to no avail. Plaintiff has not been able to ascertain the whereabouts of any assets of the defendant.”
The judge ordered Wulf to appear at a July 13 debtors’ exam to testify under oath about his assets.
According to a court transcript, neither Wulf nor an attorney representing him appeared in court. But an attorney for Four County Pig Placement told the judge a wire transfer of the funds had recently been initiated, and the judge adjourned the hearing in light of the pending payment.
The company filed notice on July 14 that the judgment had been satisfied in full.
Democrats raise questions about Wulf’s refinancing
Foreclosures and financial instability are not unusual in Iowa agricultural circles, where family farm operations face nearly unprecedented hurdles amid high production costs, trade tariffs and consolidation.
The Register recently reported that Iowa farm income dropped 53% from 2022 to 2024 because of high costs, low crop prices and trade issues.
Lahn’s campaign said Wulf’s situation helps to illustrate the campaign’s message about “rising costs, shrinking margins and increasing consolidation in agriculture.”
But it is unusual for a governor candidate in one of the state’s most competitive and high-profile elections to tap a running mate with substantial financial baggage.
It has opened Wulf and the campaign to heightened scrutiny.
BJ James McLaughlin, a Republican who attended the Westside Conservatives event, asked Wulf to address the situation and “share with us how you’re going to frame your financial situation to make it consumable and palatable to the people out there, because it’s coming up.”
Wulf called it “absolutely a fair question.”
“We’re fortunate in this state to have some of the strongest ag financial lenders that are willing to stick it out,” he said. “And that’s what’s been most fortunate for us. We were able to refinance our farm, and we’re moving forward. And is it tough? Yes, it’s absolutely tough. And were those discussions tough? Absolutely. But I will tell you this, farmers are resilient in the state of Iowa. I like to think our farm is resilient as well, and we’re going to get through this just like every other family farm right now.”
Democrats have raised questions about how Wulf has been able to turn around his financial situation and whether his position on the gubernatorial ticket has helped him to secure assistance from the campaign or its supporters to pay down his debts or secure loans.
Democratic gubernatorial candidate Rob Sand said he shares those concerns.
“I think if you’re in the position that he’s now in, and all of a sudden, someone’s throwing you a lifeline, Iowans deserve to know who that is,” Sand told the Register at a July 21 town hall event in Sac City.
The Lahn campaign did not respond to a question from the Register about whether Lahn, the campaign or its supporters have aided Wulf’s financial efforts.
But it said Wulf’s financial difficulties reflect those of many Iowans.
“Derek is facing the same challenges as farmers across Iowa,” Cordes said. “He’s living it every day, and throughout his time in the legislature he has been a champion for policies that put Iowa farmers first. Zach believes Iowa needs leaders who understand these challenges firsthand and are willing to fight for family farms.”
Brianne Pfannenstiel is the chief politics reporter for the Des Moines Register. She writes about campaigns, elections and the Iowa Caucuses. Reach her at bpfann@dmreg.com or 515-284-8244. Follow her on X at @brianneDMR.
This article originally appeared on Des Moines Register: Iowa GOP lt. gov. pick under scrutiny as family farm faces foreclosure
Reporting by Brianne Pfannenstiel, Des Moines Register / Des Moines Register
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By Brianne Pfannenstiel, Des Moines Register | USA TODAY Network
