Farmers have been feeling the weight of the most recent trade negotiations, as tariffs on both agricultural inputs and soybean exports have become a sticking point in the redrafting of American trade relations. President Donald Trump has sought short-term fixes, namely repurposing tariff revenues for farm bailouts and preventing Robert F. Kennedy Jr. from implementing new federal regulations on agriculture. The fact that RFK Jr. hasn’t touched energy or pesticide policy is good news for strained consumers and farmers alike.
However, trouble is brewing elsewhere. China has only committed to purchasing 12 million metric tons of soybeans, down from 22.5 million. While bailouts will provide momentary relief for farmers contending with high seed and fertilizer costs, the long-term ramifications of trade partners switching trade routes to South American exporters such as Brazil could mean the ruin of many in the farming business.
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