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Trade war, economic pressures intensify US farmers' struggles
(MENAFN) The intensification of the trade conflict with China has compounded the economic difficulties faced by U.S. farmers, who are already grappling with high interest rates and declining commodity prices. Presidential candidate Donald Trump's proposed tariffs are a particular concern for the agricultural sector, which is a critical support base for Trump and the Republican Party. According to a recent poll by the Rural Democracy Initiative, 56 percent of rural voters plan to support Trump in the upcoming election.
Farmers find themselves caught in the crossfire of a trade war that began during Trump’s presidency, when he imposed tariffs on Chinese imports in 2018. In retaliation, China imposed a 25 percent tariff on U.S. pork and soybean exports, a measure largely maintained by President Biden. Although U.S. farmers received USD61 billion in aid to mitigate losses from these tariffs between 2018 and 2020, the sector has still faced significant challenges. Farm debt and closures have surged in pivotal swing states like Wisconsin and Georgia, although bankruptcies have seen a decline in recent years.
Trump's promise to impose a 60 percent tariff on Chinese imports if re-elected has heightened fears among farmers about the potential impacts and retaliatory tariffs. Lori Stivermer, a pork producer from Easton, Minnesota, expressed concern about the additional tariffs, noting that even if the tariffs do not directly target their products, the overall industry will feel the impact. With 25 percent of U.S. pork exported, current tariffs have already added approximately USD64 to the cost of a single pig. This comes at a time of falling crop prices and shrinking livestock numbers, combined with rising borrowing and operating costs. The U.S. Commerce Department has projected a significant drop in net farm income to USD116.1 billion in 2024, reflecting a 25.5 percent decline from the previous year.
According to the Purdue University-CME Group Agricultural Economics Barometer survey, 23 percent of farmers view high interest rates as their primary concern, while 33 percent are most worried about rising input costs, and 25 percent are troubled by lower crop and livestock prices.
Farmers find themselves caught in the crossfire of a trade war that began during Trump’s presidency, when he imposed tariffs on Chinese imports in 2018. In retaliation, China imposed a 25 percent tariff on U.S. pork and soybean exports, a measure largely maintained by President Biden. Although U.S. farmers received USD61 billion in aid to mitigate losses from these tariffs between 2018 and 2020, the sector has still faced significant challenges. Farm debt and closures have surged in pivotal swing states like Wisconsin and Georgia, although bankruptcies have seen a decline in recent years.
Trump's promise to impose a 60 percent tariff on Chinese imports if re-elected has heightened fears among farmers about the potential impacts and retaliatory tariffs. Lori Stivermer, a pork producer from Easton, Minnesota, expressed concern about the additional tariffs, noting that even if the tariffs do not directly target their products, the overall industry will feel the impact. With 25 percent of U.S. pork exported, current tariffs have already added approximately USD64 to the cost of a single pig. This comes at a time of falling crop prices and shrinking livestock numbers, combined with rising borrowing and operating costs. The U.S. Commerce Department has projected a significant drop in net farm income to USD116.1 billion in 2024, reflecting a 25.5 percent decline from the previous year.
According to the Purdue University-CME Group Agricultural Economics Barometer survey, 23 percent of farmers view high interest rates as their primary concern, while 33 percent are most worried about rising input costs, and 25 percent are troubled by lower crop and livestock prices.
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