Tariffs Fresh on Minds of Farmers

By the time you read this column, tractors and planters should be rolling across much of the Show-Me State (Missouri). Equipment put away last year is out of the barn, fueled up and filled with seed, waiting for the ground to warm enough to begin planting.

Farming is a profession of hope and optimism. Do you know anyone in agriculture who isn’t optimistic about the next crop — grain or animal? Any farmer not looking to grow a better stand or raise a better calf crop than the year before might be in the wrong business.

Still, there are challenges as this planting season begins.

As I write this, tariffs are the leading headline across news channels. Farmers are planting a crop with the uncertainty of markets in the face of tariffs and wondering who the customers for our products will be.

Trade impacts hit home

China has levied tariffs on many agriculture products, including corn, soybeans, beef, pork and chicken. Tariffs on Canada could affect the price of fertilizer components.

Mexico, Canada and China are America’s top trading partners. Those nations are also important to Missouri products.

Mexico is our top trading partner, second is Canada, and China is the state’s fourth-largest trading partner.

In 2024, Missouri exported:

• $1.35 billion of agriculture and related products to Mexico. The top products were soybeans and corn.
• $500 million of agriculture and related products to Canada. The top products were bakery goods, cereals and pasta.
• $177 million of agriculture and related products to China. Forest products topped the list.

I think people outside of our industry sometimes fail to remember how agriculture products impact other products.

Effects across ag sector lines

A study released earlier this month by the U.S. Meat Export Federation showed the impact pork exports have on corn and soybeans.

Last year, 525 million bushels of corn raised in the U.S. were consumed by the beef and pork exported from our nation. In dollars and cents, beef and pork exports contributed an economic impact of 14% for each bushel value, or 59 cents.

Pork exports alone accounted for 100.7 million bushels of U.S. soybeans, which equated to a market value of $1.12 billion. Pork exports contributed 13.2% of each bushel value, or $1.46.

The corn and soybean industries in the U.S., and Missouri, are critical to raising the quality livestock products that feed the world. As a top-10 producer of corn, soybeans, beef and pork, Missouri farmers are important cogs in this circle of agriculture.

Hang on to hope

We have no way to know the outcome of tariff discussions on the world stage. My hope is they are resolved by the time the first corn seed sprouts on our northeast Missouri family farm.

The bottom line is farmers grow and raise food to feed our nation and a growing world population. We must keep the faith that elected leaders will find the right trade formula to allow our farmers to do what we do best.

Springtime brings new opportunities and beginnings. Farmers and ranchers are hopeful this year will be their best year yet. Optimism is a cornerstone of the agriculture community. Welcome spring!

Chinn is the Director of the Missouri Department of Agriculture and lives on a diversified farming operation in northeast Missouri.

EDITOR’S TAKE:

Missouri Director of Agriculture Chris Chinn has been in that role for going on nine years. She is heavily involved at the state and national levels in setting ag policy. Chinn is also a farmer and knows that business from her hands on involvement on their family farm. Her message is realistic and hopeful. It sites the benefits of trade with a good dose of realism in today’s political environment. It is the nature of farmers/ranchers to be optimistic. They know that the tariffs are a necessary tool to bring trade relationships back into line with the concept of fair trade. As a reminder, the last time tariffs were invoked on ag products, farmers/ranchers had the highest net farm income in history.

Just as farmers/ranchers remain optimistic, you should also remind your sales staff to do the same. This year, while things are currently a bit uncertain when it comes to trade issues, could still be one of your best ever. Make sure your sales team continues to put farmers/ranchers at the top of their prospect list. Also, remember to put your inventory on AgTruckTrader.com®, the only dealer-facing website that is aimed directly at the ag target audience.