Despite concerns over lost sales and expenses, many farmers still support the Trump administration's tariffs - Entrepreneur Generations

Like many farmers, Roberts supports the tariffs as a trade tool.
(Photo by Nick Judin, Mississippi Free Press)

Part of the Trump administration's tariffs target U.S. agricultural goods, but many U.S. farmers support the levies despite any current economic pain. "A May survey of 400 U.S. producers found that 70% believe the tariffs will strengthen their industry in the long term," report Illan Ireland and Nick Judin of the Mississippi Free Press. "The same poll found that just 43% of respondents think the levies will hurt their earnings this year, down from 56% a month earlier."

Many American farmers who favor the tariffs are thinking about longer-term trade benefits. Ireland and Judin explain, "China is a top destination for U.S. agricultural exports like soybeans, and getting it to buy a set amount of crops each year would guarantee a market for producers without the threat of competition, one economist explained. That certainty, in turn, would stabilize commodity crop prices."

The tariffs also pose risks, including helping South American producers grab a bigger share of the Chinese soybean market. That risk, along with high input costs and possible labor shortages has spurred concerns among some farmers. The Free Press reports, "Trump’s trade war has proven divisive for American farmers — a group that overwhelmingly backed the president during last year’s election, according to a county-level analysis by Investigate Midwest."

At present the tariffs between the U.S. and China remain in play. Ireland and Judin write, "As of June 11, the U.S. and China have reportedly reached a tentative accord to de-escalate their trade dispute without inking a significant deal. According to The New York Times, some tariffs will remain in place on both sides. . . . China has canceled mass shipments of American farm products, and industry groups warn that a lengthy trade dispute could further reduce demand for U.S. exports."

Mississippi farmer Pepper Roberts says he's planning for an uncertain season. Ireland and Judin add, "Roberts steadfastly supports the tariffs. He also has some savings from past years to fall back on if things go south." Roberts told reporters, "You can’t hit a grand slam every year. We all want the biggest profit we can ever make, but when I cross (the) break-even point, I’m ready to lock something in.”

from The Rural Blog https://ift.tt/dNyueb9 Despite concerns over lost sales and expenses, many farmers still support the Trump administration's tariffs - Entrepreneur Generations

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