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.
Strong production numbers and government policies support the thesis of higher costs for longer.
In 2024, the U.S. exported nearly 27 million metric tons of soybeans to China.
As the two countries battle over trade tariffs, China reportedly buys three cargoes of U.S. soybeans, its first purchase in months.
Some analysts believe a deal with Beijing will happen this week because of a potential gap in availability of the oilseed that’s likely to occur between the time the U.S. bean harvest ends and the Brazil harvest begins.
On Wednesday, Secretary Rollins announced a plan for American ranchers and consumers as Trump posted comments on social media regarding tariff impact on beef prices.
With China currently not buying U.S. soybeans, trade missions have taken on a whole new level of importance.
The Farm Journal September Ag Economists’ Monthly Monitor makes it clear: Working capital is thinning, export markets are shaky and long-term crop margins could get ugly. But for now, one thing is still keeping its strength: Americans’ appetite for beef.
China, the world’s biggest buyer of soybeans, has yet to book any U.S. soybean cargoes from its autumn harvest.
With most input prices still record or near-record high, farmers in parts of the country have seen eroding balance sheets for four straight years. Now the concern is more farmers will be forced out of farming this year, unless they see some type of market or government intervention.
Consumers may think that food inflation helps farmers because they assume we’re getting more money for our crops and our livestock. Yet this is not true. We don’t receive the shop price. A lot of what consumers spend goes to retail overhead, fuel and transportation, tariffs, and more.