Farmers as Trade Pawns? Again?
A guest column by Aaron Lehman, President of the Iowa Farmers Union...
BY AARON LEHMAN
GUEST COLUMNIST
AARON LEHMAN is a fifth-generation farmer from northern Polk County where he grows corn, soybeans, oats, and hay in conventional and organic rotations with his family. He is president of the Iowa Farmers Union.
Former President Donald Trump recently vowed to impose tariffs of “60 percent or higher” on Chinese goods if he wins a second term. Farmers know how that turned out last time around.
A trade war of epic proportions quickly developed in President Trump’s first term. China retaliated against U.S. farmers. Massive downturns in the corn, soybean, and other markets led to losses estimated at $29 billion dollars to farmers in 2018 and 2019. A huge taxpayer bailout was largely bungled from the start as some deserving farmers were shut out while other mega-farms reaped a huge windfall. It led to even more megafarms squeezing out family-size operations.
"Tariffs are the greatest thing ever invented," Trump said at a Michigan rally in September. If Trump is allowed to follow through with his new threats, expect more of the same fallout.
A recent report by World Agricultural Economic and Environmental Services analyzed two possible tariff-rate scenarios. They project steep multi-billion-dollar losses for domestic corn and soybean farmers and crop-related industries. It stated that the combined soybean and corn contribution to the total economic output would drop $4.9 billion annually under the first scenario or $7.9 billion per year under the second.
The study expects that South American farmers would certainly seize the opportunity and fill the market void due to an ensuing trade war, leaving US farmers in the dust.
Trade experts often warn that trade relations are built by steady and consistent partnerships that have been fostered over time. Trade relations can be destroyed much more quickly than they can be rebuilt.
In 2019, Trump callously told his supporters that he expected that huge bailouts would be enough to win farmers’ political support for reelection. We should remember that scenario no longer exists for a president serving a second term and not eligible for a third term.
When looking at candidates for the presidential election, farmers want to avoid another trade war and to have fair treatment in the marketplace.
As I talk with other farmers, I'm hearing an increased interest in looking beyond Trump to consider a Harris-Walz administration. There is growing interest in a presidential administration willing to invest in farmers to provide more of what the world needs such as biofuels and climate solutions rather than instigating another trade war.
Farmers don't want actions that hold back American farmers and ranchers. We want investments that empower us to lead. In 2019, I had the opportunity to meet with then-Senator Harris on an Iowa farm. I found her to be a great listener and curious about how farmers can lead on the global stage.
Our leaders need to use a measured and cooperative approach when it comes to negotiating trade deals. Increasingly, farmers are ready to choose candidates who will hold other nations accountable for unfair practices while not jeopardizing the financial health of family farms.
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We need to jog peoples' memories this week - thanks for writing this Aaron, and thanks for sharing it Bob!!
What was seen in the article "Farmers as Trade Pawns> Again?" which quoted Mr. Lehman about the financial position of small farmers certainly holds true for comparatively small operation fruit and vegetable growers, farmers in Southwest Miami-Dade County, Florida.
When the Trump Administration negotiated the Treaty with Mexico to replace NAFTA, no consideration for protection was given to the above-mentioned small op Florida farmers and growers.
Why mention it? Southern Florida is the only source for domestic fruits and vegetables (4 to 6 weeks during the winter) when other areas are frozen or lack water resources for agriculture.
Should he return to office, expect more market demand for winter fruit and vegetables; restaurants and hotels in the state are likely to be major players no matter the price!
Faced with greater costs and foreign competition, growers and farmers in Southeast Florida have an alternative: sell out to developers and builders which removes agricultural land from the wintertime market. Forever.
And to think that it is now agricultural policy in the USA when other nations struggle to grow crops in desert areas (See Egypt)!
M SMITH
(29 OCT, 2024)