America needs fuel to operate, and that fuel comes from our nations farmlands. There is no doubt that the U.S. needs to renegotiate its international trade agreements, but it needs to be done delicately. Lately, President Trump’s approach to putting “America first” has had real-time consequences in the agricultural sector. In retaliation to the tariffs he imposed on certain imports, China has imposed its own tariffs on U.S. agricultural commodities. Anyone who has ever had the pleasure of owning a piece of John Deere machinery knows that it is only as good as its oil. However, I doubt the president has spent much time with grit under his fingernails. Reasserting ourselves as leadership on the global stage is necessary, but rushing into aggressive trade policy is hurting American families, especially when the main target of the tariffs is the 2nd biggest market for U.S. agricultural exports. Now, as a soybean farmer, husband, and father, the main thing growing on my land is concern.
Soybeans are one of our most important exports, and on the morning of April 4, 2018, the soybean industry lost almost $2 billion due to China’s retaliatory tariff on American soybeans. President Trump released a statement that mentioned a “plan to protect our farmers and agricultural interests.” While this may sound good to the masses, the president has not taken any steps to work with farmers on the issue. For example, American Soybean Association president and Iowan farmer, John Heisdorffer has reached out to the President Trump and offered to “discuss how the administration can work with soybean farmers and others in agriculture to find ways to reduce our trade deficit by increasing competitiveness rather than erecting barriers to foreign markets.” President Trump has yet to respond to the ASA. In a recent article, Indianan soybean and corn farmer, Brent Bible expressed his frustration when he said, “The governments have the ability to be irrational in rhetoric and in deed longer than a single farmer has the ability to remain solvent.” Illinoisan farmer, Kirk Liefer was a bit more direct when we said, “Hey, look who got you into office, when are you going to step up and support us?” These sentiments are echoing throughout the American farmlands. If we are not able to support our own families, how can we be expected to put food on the tables of the rest of the country? I cannot help but wonder how we will be “protected” when our president seems to spend his time worrying more about headlines, rather than working to protect the prosperity of working American families.
The president’s aggressive moves on trade will have more direct consequences, as well. For instance, new tariffs on steel imports will drive up the cost for U.S. manufacturers that use steel products. This could spell double-trouble for farmers that might be looking into purchasing new equipment. Dennis Slater, president of the Association of Equipment Manufacturers said the tariffs “will put U.S. equipment manufacturers at a disadvantage,” undermining 2017’s tax reform and threatening American jobs. This coupled with the international retaliation on U.S. agriculture products has led some farmers to hold out on large purchases. Mark McHargue of Nebraska, explained to NPR that he plans to hold out on purchasing up to $100,000 worth of equipment that he had planned on purchasing this year. This not only hurts farm productivity, but the domestic demand for U.S. steel. Many will remember how the Bush steel tariffs of 2002 caused a global backlash that had the potential to affect several American industries, had they not been rescinded less than two years later. The president’s unwillingness to learn from the mistakes of his predecessors or take a tactful approach to these delicate issues have many American farmers anxious and uncertain. These actions are truly shaking the American economy at its very foundation.
So, what of this “protection”? What can the federal government do for us outside of subsidies? If that is what they offer, then countries such as Canada, Australia, Brazil, Argentina, as well as the European Union will retaliate. Why? Because we would be guilty of the exact same thing that China is doing with steel, aluminum, and solar photovoltaics. In my opinion, President Trump would be wise to learn from the mistakes of his predecessors, rather than repeat their mistakes, as it appears he is doing. Perhaps if he wasted less time on the defense and focused on making America great again, he could manage to get a few steps ahead of the global competition. Nevertheless, Gambling with our livelihood shows a complete disregard for the rural America he swore to defend. At the rate things are headed, and as much as I would love to remain hopeful, for the sake of my family, I must keep my mind open in 2020.
References
“Agricultural Trade.” USDA ERS - Agricultural Trade, White House, 5 May 2017, www.ers.usda.gov/data-products/ag-and-food-statistics-charting-the-essentials/agricultural-trade/.
“Chinese Retaliation Is No Longer a 'What If' for Soybean Farmers.” Farm Talk, 4 Apr. 2018, www.farmtalknewspaper.com/news/chinese-retaliation-is-no-longer-a-what-if-for-soybean/article_195ff4d2-382a-11e8-b378-d752fdb66e38.html.
“Statement from President Donald J. Trump on Additional Proposed Section 301 Remedies.” The White House, The United States Government, 5 Apr. 2018, www.whitehouse.gov/briefings-statements/statement-president-donald-j-trump-additional-proposed-section-301-remedies/.
Behsudi, Adam. “China's Tariffs Test the Political Patience of Farm Country.” POLITICO, 4 Apr. 2018, www.politico.com/story/2018/04/04/trump-china-tariffs-farmers-agriculture-461373.
“Watch List for Farm Equipment: Steel Tariffs.” Farm Equipment Publication, Farm Equipment, 8 Mar. 2018, www.farm-equipment.com/articles/15258-watch-list-for-farm-equipment-steel-.
Cornish, Audie. “Nebraska Farmer Discusses How Trade War Would Impact American Agricultural Industry.” NPR, NPR, 4 Apr. 2018, www.npr.org/2018/04/04/599579153/nebraska-farmer-discusses-how-trade-war-would-impact-american-agricultural-indus.
Markus, Ben, et al. “'They're Scared': Immigration Fears Exacerbate Migrant Farmworker Shortage.” Colorado Public Radio, 27 Sept. 2017, www.cpr.org/news/npr-story/theyre-scared-immigration-fears-exacerbate-migrant-farmworker-shortage.
Image Citation
Image of Man Standing in Field Staring. HPPR, Jonathan Baker, 15 Nov. 2016, http://hppr.org/post/defeat-oklahomas-right-farm-bill-will-have-little-immediate-effect