America's Family Farms Need a New Era of Trade Deals

Strategic Insights -

As the threat of tariffs looms over farmers, we're living through a familiar scenario, but with even higher stakes. The last time we faced a similar challenge was a decade ago, when President Donald Trump slapped tariffs on China, leading to a decline in farm prices and a $28 billion aid package for affected farmers. Now, with the administration pausing tariffs to allow countries to negotiate, it's clearer than ever that farmers need a new era of trade deals that prioritize their well-being.

Key Takeaways:

  • The Trump administration's tariffs on China in 2018 led to a decline in farm prices, with $28 billion in aid provided to affected farmers.
  • The current situation is messier, with tariffs on countries worldwide, but the administration has paused them to allow for negotiations.
  • The stock market's volatility and slipping farmer support for tariffs have created a challenging environment for farmers.
  • A trade deal that benefits American farmers must be clear, with a focus on self-sufficiency and selling excess American goods abroad.
  • Targeted trade agreements, diversifying trade partners, and negotiating with one country at a time can help America avoid trade-offs and increase leverage.
  • The alternatives to fair trade are unfair trade and no trade, neither of which is viable for American farmers.

Statistics:

  • $28 billion: The amount of aid provided to farmers affected by declining farm prices in 2018.
  • 10%: The decline in farm prices in 2018, according to polling at the time.
  • 20%: The decline in farmer support for tariffs, as reported in recent polling.
  • 2020: The year when improving prices gave farmers more breathing room, and America forgot what had happened to its farms.

Sources:

  • Brian Reisinger, "Land Rich, Cash Poor: My Family's Hope and the Untold History of the Disappearing American Farmer" (book).
  • Stephanie Mercier, Farm Journal Foundation economist.
  • Journal Sentinel, where this column originally appeared.
  • Platform Communications, Wisconsin-based public affairs consulting firm where Brian Reisinger works.