Trump’s Trade Deals Endanger Farmers and Our Food System
Farm in California’s Sacramento River Valley. Photo: Jeffrey St. Clair
Former presidential advisor-cum-rightwing podcaster, Steve Bannon, often mentions that discerning the truth of Trump’s policy goals entails focusing on the signal and not the noise.
But doing so has been next to impossible when trying to figure out the rationale behind the administration’s moves in agriculture, which since January, have generated widespread confusion and uncertainty.
Specifically, while Trump publicly proclaims that he stands with farmers, his tariff war with China stands to rob producers of their markets. Since Trump’s last term, China has already been looking to countries like Brazil for soybeans as the US has proven an unreliable partner. Adding insult to injury, unexpectedly cancelling government contracts with thousands around the country early in his term placed undue stress on farmers who already have to contend with what extreme weather events throw their way.
Now, with the details of the UK-US trade deal becoming known, the signal – that is, the truth – of the Trump administration’s vision for agriculture is coming into view. To the point, not unlike how US agriculture has been directed for the past few decades, it is becoming clear that this administration will prioritize exports. The problem with this vision is that, even if it generates short-term profits, it endangers our long-term national food security by dangerously further internationalizing our agricultural system.
Consider the praise that US Agriculture Secretary Rollins heaped on the UK-US deal that was made on May 8th, singling out its supposed gains for farmers.
Following the announcement, the Secretary announced a tour that she will take through the United Kingdom to tout the agreement. While details are still being hashed out, we are told of a promised $5 billion in market access for beef and ethanol.
Contrast that clear messaging – the signal – with how government contracts with farmers were frozen and made subject to administrative review, and the funding for local food programs was slashed.
The contracts were connected with the Biden administration’s Inflation Reduction Act (IRA), which included resources for initiatives like those dealing with soil and water conservation, and supporting local food processing. Additionally, programs that connected local producers with schools and food banks, for example, the Local Food for Schools Cooperative Agreement Program and the Local Food Purchase Assistance Cooperative Agreement Program, had their funding cut in the amount of about $1 billion.
Since February, some of the contracts have been unfrozen if they aligned with the administration’s political objectives (i.e. not promoting Diversity, Equity, and Inclusion, DEI). Despite court orders ruling that all contracts must be honored, if and when the funds will be distributed, remains to be seen.
Overall, the noise surrounding the unfolding contract drama signals to farmers who want to diversify their operations and serve local markets that they should second guess looking to the government for help.
At the same time, Trump has not abandoned all producers.
In fact, amid the commotion about freezing some contracts, Secretary Rollins ok’d billions in direct payments, or bailouts, for growers of commodity crops such as corn. Thanks to such payments and not any improvements to markets, it is expected that farmers will see their incomes increase when comparing this year with the last.
Taken together, the bailouts along with the freshly inked UK-US trade deal and easing of tariffs on China illustrates how the Trump administration prioritizes export agriculture as the driving force of our country’s farm system.
Such dynamics smack of contradiction, as Trump appears eager to send our food abroad while he’s willing to do whatever to bring manufacturing back to America’s shores in the name of strengthening the national economy.
Still, the deeper problem is with how export promotion makes our food system insecure, subjecting farmers to international political upheavals and economic disruption.
Remember the 1970s, when a grain production crisis prompted sudden demand in the Soviet Union. Then Secretary of Agriculture, Earl Butz, told farmers to “plant fence row to fence row” and “get big or get out” to profit from the new found export opportunity.
The promise of international markets came – and went. President Carter’s embargo of grain exports to the Soviet Union in 1980 for that country’s invasion of Afghanistan came as a body blow to the farmers who made commodity exports central to their financial plans. Farmers then struggled to pay off the debt for the land and machinery that they acquired just a few years before, which with rising gas prices, contributed to the 1980s farm crisis. Parallels abound now, including the initial effects of Russia’s invasion of Ukraine increasing fertilizer and gasoline costs, and most recently, the ongoing dynamics of Trump’s trade war with China.
Concerning the UK-US deal, UK imports of ethanol may seem a boon for corn growers. But without future terms of the deal becoming clear, it is unclear if this is simply a continuation of what the British already import. Similarly, the significance of the slated $250 million in purchases of beef products is of questionable importance, as last year the US exported $1.6 billion to China. Regardless of the recent 90 day truce in the China-US trade dispute, the remaining 30% tariff would still hurt American farmers. The Trump administration’s export push will find farmers without markets and in need of more bailouts.
Besides subjecting US farmers’ livelihoods to international uncertainty, the other concern is the lack of concern for the next generation of food producers. Year after year, the country’s farmers are getting older, with no one stepping up to replace them. According to the 2022 Agricultural Census, the average farmer is over 58 years old, up over half a year from when the last census was conducted in 2017. During that same time, we lost nearly 150,000 operations. Since 2012, over 200,000 farmers have left the industry, representing a 10% decline. Meanwhile, according to the USDA, upwards of 70% of farmland is expected to change hands over the next twenty years.
Export promotion serves a temporary fix, but places farmers at the whims of international politics. Moreover, it threatens our country’s already economically-pressed farmers, making our country even more dependent on a dwindling number of people for our food, as well as imports. In fact, since 2004, while exports have nearly doubled from $50 billion to $200, our food imports have increased slightly more so.
Trump’s efforts to undo the previous administration’s policies set up our food system for disruption and crisis, subjecting farmers to the uncertainties of international markets and developments elsewhere. If there is a signal with the noise that Trump is making with our food system, then this is it – farmers better get ready for a volatile next few years and more bailouts, as operations will continue to go under. Overall, Trump’s nationalist rhetoric amounts to little, as our food system becomes more global, increasingly made vulnerable to dynamics outside our control.
