Tariffs
Tariffs, also known as taxes on imported goods, are a tool used by President Donald Trump as part of his overall economic vision. As U.S. agriculture navigates tariffs and their implications on trade, commodity prices, input costs and more, ag economists and farmers remain divided on the effectiveness of tariffs and what the changes mean for the broader economy and livelihoods.
Kent Beadle of Paradigm Futures says, unlike the financial markets, the ag futures did not see the positive reaction to the ITC court ruling declaring the “Independence Day” tariffs as illegal.
Darin Newsom, Barchart, says the financial markets have reacted positively to the International Trade Commission’s court ruling against the Trump tariffs, declaring them unlawful. However, the ag markets are disregarding the news.
Darren Frye, Water Street Solutions, says the grain markets saw risk off selling tied to President Trump’s threat of 50% tariffs on the EU on June 1.
“China and Brazil are getting together. They’re going to build infrastructure, and they’re going to make SAF and they’re going to build railroads, and it’s not good for us and our future. That’s why we need new markets,” says Iowa farmer Tim Burrack.
Chip Nellinger, co-owner of Blue Reef Agri-Marketing, says soybeans soared on the combination of positive China trade news and the bullish May WASDE.
At least on the surface, USDA’s estimates for both old and new crop corn and soybean ending stocks were below average trade guesses. However, Jim McCormick, AgMarket.Net, says there is some skepticism due to tariff considerations.
U.S. ag products, including beef and ethanol, experienced a $5 billion victory today with the U.S.-UK trade deal.
The market might not be as hot as it was two years ago, but it still sizzles. The economics of low supply and strong demand are keeping prices fairly stable with only slight reductions seen this spring, depending on the location and quality, says Colton Lacina, Farmers National Company.
While 56% of farmers say they believe the ongoing trade disputes with China and other countries will hurt them financially this year, 70% say they believe the U.S. and agriculture specifically will benefit in the long-term.
A pair of Canadians in farming weigh in on the country’s latest election results and the implications for agriculture sectors like the dairy industry and farm equipment manufacturing.