Farm Bureau: US-EU Deal on Tariffs is Good for Farmers

The deal reached this past weekend to end European Union (EU) retaliatory tariffs on U.S. corn and other goods in exchange for a halt to U.S. tariffs on EU steel and aluminum is welcome news for American farmers, according to American Farm Bureau President Zippy Duvall. “While the dispute centered around steel and aluminum, farmers were swept up in the turmoil as the EU clamped down on U.S. agricultural exports like orange juice, butter, cheese, pork, nuts and many more,” Duvall said in a statement. “It’s crucial that we now restore those trade relationships.”

American barley, rye, corn and wheat farmers who supply the U.S. whiskey industry will also see a benefit from the deal. EU retaliatory tariffs have been hitting American whiskey exports hard, as reported by Distilled Spirits Council President and CEO Chris Swonger. “Lifting this tariff burden on American whiskeys not only boosts U.S. distillers and farmers, it also supports the recovery of EU restaurants, bars and distilleries hit hard by the pandemic,” Swonger said in a statement.

EDITOR’S TAKE:

Improving market access with the EU is a strong positive for U.S. agriculture. We have stated many times that ag is highly dependent and, therefore, vulnerable to the swings and changes in trading relationships. This deal will open the doors to many ag exports as listed in the article, which will translate into more income for American farmers/ranchers. That additional income will help offset some of the rising input costs expected in 2022. We continue to be optimistic about net farm income in the coming year. You should look beyond your current inventory situation to decide who your best customer prospects will be down the road. It is still our opinion that farmers deserve to be at the top of that list!