‘We Support Free Trade as We Oppose Tariffs’: US Farmers
© AP Photo / Seth Perlman
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It's the US farmers who could ultimately feel even more pain as a result of Trump administration's tariffs on Canada, Mexico and China, US media and economists warned. In her Insight Talk show, Global Times (GT) reporter Wang Wenwen talked to two US farmers about the impact the tariffs will have on them and their concerns.
Ryan Marquard (Marquard), vice president of the Iowa Farmers' Union, has raised and directly marketed beef, chicken, turkeys and eggs for almost two decades. Caleb Ragland (Ragland), president of the American Soybean Association, farms 4,000 acres of soybeans, corn and winter wheat.
GT: In light of the tariff war, what is the general mood among farmers now?
Marquard: It's not good at all. We've been down this road before. Last time though, the agri economy was in a much stronger place. It's hard to say that we're not in an agricultural recession in America, and we have all the uncertainty of a tariff regime and significant disruption in terms of the US Agency for International Development funding. All of that just creates a great deal of uncertainty. My biggest concern personally is just the stress on beginning farmers and whether or not we have the potential, if this goes on for a prolonged period of time, to lose an entire generation of farmers here.
Ragland: I think there is a mood of grave concern. Commodity prices in general are lower, and cost of production is high, and profits are low or nonexistent. Before all this happened, there's already a lot of concern. You add in trade war and potential loss of the market share - very concerning and the general attitude: People are not in a good mood, not happy.
GT: In light of the tariff war, what is the general mood among farmers now?
Marquard: It's not good at all. We've been down this road before. Last time though, the agri economy was in a much stronger place. It's hard to say that we're not in an agricultural recession in America, and we have all the uncertainty of a tariff regime and significant disruption in terms of the US Agency for International Development funding. All of that just creates a great deal of uncertainty. My biggest concern personally is just the stress on beginning farmers and whether or not we have the potential, if this goes on for a prolonged period of time, to lose an entire generation of farmers here.
Ragland: I think there is a mood of grave concern. Commodity prices in general are lower, and cost of production is high, and profits are low or nonexistent. Before all this happened, there's already a lot of concern. You add in trade war and potential loss of the market share - very concerning and the general attitude: People are not in a good mood, not happy.
GT: How will the tariffs affect your business and family?
Marquard: We are in the process of taking over or moving into a management role on the conventional side of our family farm. We have about 600 acres of conventional crop production, primarily corn and soybeans in rotation. We're gonna see a lot of impact from the tariffs there. Specifically, the Canadian tariff will probably be one of the more painful ones. Past management in the family has done probably a pretty poor job of investing in soil amenities to sustain high crop yield levels. We're probably going to have to invest in those things to get us back to where we should be. One of the main things we're looking at is potash, as 80 percent of all potash used in America comes from Canada. And so that's gonna sting on that side.
Ragland: We have to be able to be profitable to stay in business. That's not just me; that's all farmers across this country. My farm is 100 percent of the income for my family. My wife works on the farm. We have three sons who are still in school, but they actively help us as well. We have three employees that work full time and their families are dependent on our farm as well. So there're four families plus other folks that help us part time and so forth. So we have a big economic impact and a lot of people are dependent on the standard business. I feel the responsibility to do everything I can to keep our business going.
GT: How do you plan to deal with the looming impact?
Marquard: There's so much uncertainty right now. I just don't see farmers making a lot of long-term investments. I think they will primarily focus on the near term and try to survive. There likely won't be a significant amount of long-term investments in farming, infrastructure, equipment and similar areas. We'll take a back seat to just a survival mode.
Ragland: We're gonna do everything we can to make smart decisions with our marketing to not spend excess money and to tighten our belt, hope for the best, but try to be prepared for the worst. It's very concerning and not an exciting potential outcome.
GT: Trade wars a few years ago slashed billions of dollars in US agricultural exports. Do you expect an even bigger hit this time?
Marquard: I think it's very probable. The thing here is last time we were in a better place to begin with, and now we're in a worse place to begin with. There's no incentive to try to take a bet on American agriculture when you could go elsewhere right now. That's a terrifying place to be.
GT: Marquard, in your opinion, how will the US-initiated tariff war jeopardize the business relationship between Iowa and China, and even the US and China?
Marquard: The reality is that these trade relationships have taken a long time to cultivate. They are built on relationships, they are built on consistency and predictability. When you have these tariffs, the tit-for-tat tariff wars that we get into here degrade that relationship just at a very base level. It makes it hard for me to plan to sell something into a marketplace when my targets are shifting and your targets are shifting, and it's just really hard to communicate that when you are increasingly powerless to control your own fate.
That's really the problem with tariffs. It's especially when they're used in a way where one day it's this, and next day it's that. And then there's an exemption here. You can't plan around that. It's next to impossible. That just makes it harder to have a good trading relationship with China. That's really the shame here because what I think a lot of people have strived for is stability through trade and mutual prosperity. And this just smacks that in the face.
GT: Ragland, as president of the American Soybean Association, what worries you most about China-US relations?
Ragland: I know China has invested in infrastructure in Brazil in particular, and is looking to them for more of their soybean needs. It's disappointing as a US farmer to lose a market competitor. We are not willing to be dependent on the government to have programs and different things to make us competitive with our prices, but we need the government to not build walls by putting tariffs in place that make us less competitive in the free market.
The relationship between our two countries is important for both. That's the way free trade works. It's a deal that is good for both parties. That's the way it's intended to be.
I think one of the best things we could do between the US and China is to get back and make a big trade deal that where both countries are selling each other lots of products, and we have reciprocal trade instead of reciprocal tariffs, which helps both countries make money instead of just fighting.
Ragland: I know China has invested in infrastructure in Brazil in particular, and is looking to them for more of their soybean needs. It's disappointing as a US farmer to lose a market competitor. We are not willing to be dependent on the government to have programs and different things to make us competitive with our prices, but we need the government to not build walls by putting tariffs in place that make us less competitive in the free market.
The relationship between our two countries is important for both. That's the way free trade works. It's a deal that is good for both parties. That's the way it's intended to be.
I think one of the best things we could do between the US and China is to get back and make a big trade deal that where both countries are selling each other lots of products, and we have reciprocal trade instead of reciprocal tariffs, which helps both countries make money instead of just fighting.
GT: Why does the US government launch trade wars even at the cost of its own farmers?
Marquard: That's a good question. Clearly, it is a negotiation tactic. But the reality is farmers are so often just pawns on that field that we get sacrificed in the name of this larger global chess match. It's pretty not a very good place to be. You'd much rather be a piece in the back row than being a pawn up front.
GT: Amid all these concerns and unease about tariff wars, will state or federal farmers' unions unite to oppose the tariffs, and if they do, will it make a difference?
Marquard: As pain spreads, there may be more unity amongst the farming coalitions and the farming voices opposed to these tariffs. I hate to say it, but usually things have to get worse before they get better.
Ragland: Agriculture is a strong lobby when we combine our forces. There're many examples currently and in the past of things we've done when we work together that have raised a lot of attention and have led to change. We worked on a project recently where there were over 300 agriculture organizations involved with a letter talking about some things we needed. We work hard to find those areas of common interest and work together and try to implement change. We support free trade as we oppose tariffs, and we are working hard with our government officials to deliver that message. They know where we stand. We are trying to tell our stories as individual farmers.
This article was orignally published by the Global Times.
