How Trump’s trade policy is putting pressure on U.S. farmers

Soy farmer Caleb Ragland, based in Magnolia, Kentucky, has been a loyal supporter of President Donald Trump, having voted for him in 2016, 2020, and 2024. However, Ragland finds himself in a challenging situation as he navigates through a minefield of tariffs that are impacting the soybean sector. Despite being deeply rooted in the farming community with a family history of farming that spans over two centuries, Ragland has been facing significant challenges in recent years. He has witnessed a double-digit percentage decline in crop prices while production costs continue to rise. Soybean futures have plummeted by more than 40% in the last three years, along with corn futures.

The tariffs imposed by the second Trump administration, as well as retaliatory levies from other countries, have added to the pressures faced by farmers like Ragland. As the president of the American Soybean Association, Ragland is concerned about the long-term sustainability of his business amidst policies that are beyond his control and that manipulate prices and increase costs.

The trade war with China during Trump’s first term in 2018 had already caused significant losses to the U.S. agriculture industry, with soybeans accounting for a substantial portion of the losses. The ongoing trade tensions have strained the relationship with China, the largest buyer of U.S. soybeans, making it challenging for farmers to recover lost market share.

The recent imposition of tariffs on goods from Canada, Mexico, and China has further exacerbated the situation for farmers like Ragland. The uncertainty surrounding tariffs and the potential for further increases have left farmers feeling vulnerable and unprofitable. Ragland emphasized the need for policies that reduce trade barriers and provide support to the agricultural sector through a comprehensive farm bill.

The impact of tariffs extends beyond soybean farmers to other agricultural sectors, such as fertilizer suppliers like Nutrien, which rely on imports from Canada. The cost of tariffs is expected to be passed on to U.S. farmers, further squeezing their margins and affecting their profitability.

Despite the challenges posed by tariffs, some analysts believe that the trade war may lead to a reshuffling of global trade dynamics, with countries like Brazil potentially becoming the primary producers of corn and soybeans. While the near-term impact on U.S. farmers is significant, there is optimism that trade flows will eventually adjust, mitigating the long-term effects of the trade war.

In conclusion, the tariffs imposed by the Trump administration have created uncertainty and challenges for American farmers like Caleb Ragland. As they navigate through a volatile market environment, farmers are calling for policy solutions that provide stability and support to ensure the sustainability of the agricultural sector.