They put off buying a new combine. They decided that a tractor can wait another year. Those decisions by farmland owners and operators have already stalled the market for companies like John Deere, who told investors that higher tariff policies could cost the company $600 million this fiscal year.
“As stated on our most recent earnings call, the struggling ag economy continues to impact orders for John Deere equipment,” Deere told CNBC in a statement. “This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.”
The economic reality of raising tariffs is impacting Conagra Brands. The company said that it expects higher prices for ingredients like eggs and cocoa. “President Trump’s global trade war is expected to add another $200 million in costs for the company,” Conagra executives said.
Steel and aluminum are among the items that have become more expensive because of higher tariffs. Conagra said that higher tariffs were responsible for an additional 3% cost on its goods.
Organic sales have also fallen for the company. Agriculture producers who specialize in organics have been dealing with a challenging environment as some consumers opt for cheaper options considering inflation that has remained above the Federal Reserve’s preferred 2% throughout all of 2025.
EDITOR’S TAKE:
One can only maintain hope that when all the tariffs are negotiated and the numbers all settle into place that the impact on agriculture will be minimal. During the first trade war in 2016, agriculture became a target for retribution by China. Our farmers/ranchers were able to overcome the hardships vis a vis government payments provided from tariff collections. The uncertainty of the current tariffs and when that uncertainty will subside is keeping a lot of people busy trying to figure out a comprehensive strategy for dealing with the tariffs in the short term.
You can help reduce the anxiety over tariffs for your farm/ranch customers by introducing them to AgPack®. With nearly $50,000 in potential savings from exclusive rebates and discounts, AgPack® can help reduce operating costs for your customers. That little bit of certainty can be a huge benefit in the current environment.
