Farmers are worried about their future amidst the ongoing trade war. Rising costs and falling crop prices have already made things tough for American farmers over the past three years. Now, President Donald Trump’s trade war actions are adding to their concerns. Tariffs on goods from Canada, Mexico, and China have been implemented, and retaliatory tariffs from these countries are impacting U.S. farm imports. Past experience has shown that such tariffs hurt farmers, leading to decreased market share and the need for government assistance to make up for losses. The agriculture industry is bracing for more challenges this time around, with fears that these tariffs will further limit export opportunities. While government payments can help farmers, the focus should be on finding new markets to drive sales rather than relying solely on subsidies. The uncertainty caused by the trade war is exacerbating the financial strain on farmers, with concerns about the long-term impact on the agricultural sector.
“We excel at producing healthy, safe, and cost-effective food in abundance, surpassing the needs of our country,” states Chad Franke, the president of Rocky Mountain Farmers’ Union, a union representing 14,000 farmers spanning Colorado, Wyoming, and Mexico. Franke analogizes the surplus food production to overfilling a gas tank, emphasizing the challenge of managing excess supply.
Consider the dairy sector as an example. Approximately 20% of the U.S. milk output is exported annually, with a significant portion, about 40%, heading to Canada, Mexico, and China. Chuck Nicholson, an associate professor at the University of Wisconsin-Madison, explains the delicate balance of supply and demand in the dairy industry. A slight increase in domestic milk supply can swiftly drive prices down, posing a threat to farmers’ livelihoods.
Nicholson highlights the additional challenges faced by dairy farmers due to Trump Administration policies, such as immigration restrictions and potential cuts to government programs like food stamps. These policies impact the demand for domestic dairy products, furthering the uncertainty within the industry. Farmers grapple with market fluctuations, governmental support, input costs, and pricing uncertainties, adding to the already volatile nature of their profession.
“Farmers and ranchers navigate enough uncertainties daily,” notes Franke, underscoring the need for stability in an unpredictable environment. The prevailing concerns about market dynamics, governmental policies, and operational costs compound the existing challenges faced by farmers, creating a precarious situation for the agricultural community.
For further inquiries, reach out to us at letters@time.com.
