Farmers of all kinds from every corner of the United States are feeling the damage from the economic effects of President Donald Trump’s trade war. These policies have resulted in a steep decline in agricultural exports and increased business costs. With the administration expected to announce a government bailout aimed at alleviating some of these pressures, opinions on its effectiveness vary widely among those in the farming community.
Mark Legan, a livestock, corn, and soybean farmer and resident of Indiana, was critical of the aid package. He described it as a “band-aid” solution. This approach will not address the underlying issues of declining crop prices and increasing costs associated with equipment, land, and labor. Legan noted, “I’m not going to fall on the sword and not take the government money, but it’s not going to solve the problem.”
Brad Smith, another Illinois farmer and fellow Next Gen, produces soybeans and corn. He hopes the expected financial relief could be a lifeline for his beleaguered operations. After China cut off imports of U.S. soybeans in May, Smith realized he might need government assistance to keep his family’s farm from going under. He remarked, “If you’re swimming in red ink, an infusion of cash helps stem the tide.”
The cover to this perfect storm is the barrage of tariffs launched by President Trump, which have hurt businesses across the country. The administration’s trade policies prompted China and other trade partners to target American agricultural exports, increasing political pressure on Trump during his first term. The ramifications have been severe. The price of soybeans has dropped to around $10 per bushel—far below the threshold needed for farmers to break even.
As one of the affected industries, Justin Turbeest, owner of a craft brewery in Hudson, Wisconsin, told his story. Combined with numerous other impacts from the pandemic, the tariffs are what forced him to close his tap room and lay off 20 workers. Turbeest expressed frustration, stating, “On a personal level, of course it feels unfair,” and emphasized that the current economic challenges stem from political decisions rather than typical market forces: “The position we’re in now is due not to normal economic factors. It’s political costs.”
The repercussions of these trade policies go well beyond agriculture. California’s Wine Institute just announced a stunning 30% drop in California wine exports thus far this year—exclusively due to those tariffs. At the same time, the Distilled Spirits Council of the United States announced an outrageous 85% decrease in distilled spirits exports to Canada. Megan Wyatt, who owns a toy shop in Granite Bay, California, faces heightened costs due to tariffs. Approximately 80% of her products are sourced from China.
In light of these recent actions, the Can Manufacturers Institute is now working to гарbitrate. They’re calling on the administration to free any relief package targeted towards farmers from these tariffs, by excluding tariffs on tin plate steel. This push has been especially important to discourage regulatory overreach, placing the least financial burden possible on producers already contending with multiplying costs of operations.
As in previous bailouts of $28 billion during Trump’s first term, larger farms benefited disproportionately. This situation led to worries about equity among the agriculture enterprise. Critics fear that this pattern will persist with future aid packages.
President Trump has issued several statements claiming his administration is working out plans to deliver several billions in support. This assistance will directly benefit soybean farmers and other producers harmed by recent increase in trade tensions. He rightly argues that many of the farmers who would receive this help don’t need it. He goes on to declare emphatically, “They’re not going to use it.”
As a result, the debate over government assistance effectiveness is fierce. It’s a reminder of the very real struggles that farmers and businesses all across America are currently experiencing as they navigate trade wars and other shifts in the economic landscape.