Tariffs: Trump’s prior use of tariffs, such as on Chinese imports, ignited a trade war that harmed U.S. farmers, particularly soybean producers, as China turned to Brazil and Argentina for soybeans. Farmers are concerned that new tariffs as high as 400% could hurt the economy and fuel inflation. While some hope for beneficial trade deals, many are wary of another trade war that could impact production and ripple through the economy.
Farm Bill: The Farm Bill, an essential agricultural policy piece, has been temporarily extended but might face updates. Trump’s administration may bring more trade disputes and direct payments to farmers, though experts warn these could have negative long-term effects. A key determinant will be which party controls Congress, as Republican control could lead to significant budget cuts.
Labor and Immigration: Labor shortages in agriculture could worsen under Trump’s immigration policies. With agriculture heavily reliant on immigrant labor, potential deportations and restrictions on H-2A visa workers could drive up costs and reduce workforce availability, likely increasing food prices.
Agricultural groups have congratulated Trump while urging his administration to prioritize urgent issues such as high input costs, labor shortages, and a modernized Farm Bill. They emphasize the need for policies that ensure stability, economic growth, and support for U.S. farmers in these challenging times.
Trump win could spur China to boost US agricultural imports: China can be promptedto improve trade relations with the U.S., potentially increasing agricultural imports. This because under Trumps previous term China agreed to major trade deals for U.S. agricultural products, but COVID-19 disrupted these targets. U.S. exports of corn, soybeans, and wheat to China have varied but significantly increased in 2020-21.
Meat with added Value