Farmers ponder possible tariffs
Say they may cause hardship, but can serve a purpose
BROWN COUNTY — While the Trump Administration has proposed 2025 agricultural tariffs, nothing has been set yet.
Proposals include a 25% tariff on all imports from China and Mexico, a 10% additional tariff on Chinese goods, with potential for higher rates and a possible across-the-board 20% tariff on all U.S. imports.
Brown County Corn and Soybean Board member Justin Remus said agricultural tariffs proposed by Trump are a concern that many growers have.
“I’m not worried so much for 2025, but I worry for 2026. It’s a concern that many growers have. I believe it will be a concern the further out we go. As long as the cause outweighs the short-term loss. We need to look at it long-term. Some struggling now may help us later,” said Remus.
He said soybeans took a hit from tariffs in 2017 but rebounded well when trade was established.
“But we were in a different place then. We didn’t have the input costs we do now. China has not been held to what we agreed upon in the China trade deal in 2020. They haven’t honored the trade agreement. I think the tariffs are an attempt to get them back in line with what we previously agreed upon, but was left to slide for four years,” said Remus.
He said input from the U.S. Department of Agriculture and other organizations and people that know what is needed should be considered before tariffs are used.
“We need to know what the risk reward is. If all we do is create risk and don’t open new markets, it can come down to growers having to pay more to produce products. Tariffs may be just a piece of the puzzle,” said Remus.
Lake Benton farmer Bob Worth, who represents the Minnesota Soybean Grower’s Association on the American Soybean Association, said he feels tariffs help in the long run.
“The last time we had them in 2017, phase one worked really well. We need them. They can cause a lot of hardship up front, but can help in the long run. We actually got more back than we lost in 2017,” said Worth.
He feels the U.S. Department of Agriculture and U.S. Commerce Department should be involved with tariff decisions.
“This is important. It affects us all. If tariffs are used as a bargaining chip, they don’t cost us anything,” said Worth.
“We lost $4.68 on soybeans the last two years, partly because we didn’t trade with anybody. We have to find new buyers if China is out of the picture. It’s tough to do. We need to trade with the European Union market, which we haven’t done for years and years. We need to use the Port of Duluth for new markets,” he said.
Brown County Commissioner and Comfrey farmer Jeff Veerkamp said tariffs can be used as a way to level the farm market playing field.
“When I started farming 20 years ago, corn was $2.50. Then it went to $7, which was too much. Now it’s back to $4.50. We need to find a happy medium. I grow my crops and take what they give me. Sometimes, I’m happy. Sometimes I’m not.
Brown County Commissioner and Sleepy Eye farmer Brian Braun said he hopes agricultural tariffs are only used as bargaining chips.
“They can have a negative affect overall. The recent tariff threat with Colombia worked well. They didn’t even last a day,” said Braun.
North Dakota State University agricultural economists recently analyzed U.S. tariff scenarios.
If the United States levied 60% tariffs on all Chinese imports and 10% tariffs on all imports from the rest of the world, with tit-for-ta retaliation, the total value of U.S. agricultural exports for 2025 are forecast to decline 34.4%, a loss of $60.6 billion.
U.S. soybeans would be the most vulnerable, followed by wheat and corn.
Uncertainty about export markets due to changing U.S. trade policy will likely increase any U.S. farmer financial stress and add pressure on the federal government to consider ways to reduce stress with more payments to farmers similar to those applied during the 2018/19 trade war.