Tariffs, Trade Wars, and the Farm: What’s at Stake?
It’s the dirty T-word on everyone’s lips right now.
Tariffs.
Whether you’re for them or against them, they’re the hottest topic in the United States right now.
Few know this more than U.S. farmers.
When soybean prices tanked in 2018, plenty of folks in the media rushed to cover the drama. But for soybean farmers across America, it wasn’t just a headline, it was their livelihood.
Let’s be real, for many people, tariffs are political talking points. For farmers, they ripple through every acre, every invoice, and every planning season. Whether it’s a 5,000-acre row crop operation or a diversified small farm, what happens in global trade affects everything from crop prices to equipment costs.
How exactly do tariffs, and trade policy in general, actually impact the ag industry? What’s changed since the last round of trade wars? What farmers can do to adapt in a world that never seems to sit still these days?
What Are Tariffs, Really? And Why Should Farmers Care?
At their core, tariffs are taxes on imported goods. Governments impose them for all kinds of reasons. Protecting local industries, pressuring foreign powers, or responding to trade imbalances.
But in agriculture, tariffs are a double-edged sword. While they might be used to support domestic growers, they have the potential to backfire. Especially when other countries retaliate, and don’t back down. American ag exports like soybeans, beef, corn, and dairy are highly vulnerable to shifts in global trade, and tariffs can dry up demand overnight.
Now, most farmers don’t sell directly to China or Europe. But they can feel the impact when those markets close, prices crash, and their local grain elevator suddenly stops taking in contracts.
What Happens When the Export Markets Shrink?
The most visible impact of tariffs is on commodity pricing. When foreign markets slap retaliatory tariffs on American ag goods, demand falls, and so do prices. In 2018, for example, U.S. soybean exports to China plummeted by nearly 75%. Domestic stockpiles grew, and prices tanked. Farmers were forced to hold grain longer or sell at a loss.
Input costs also climb. Many farmers rely on imported fertilizer, feed, seed, and machinery components. Tariffs on steel and aluminum drove up equipment costs. Some had to delay upgrades or repairs. And when margins are already razor-thin, a 10–20% bump in input costs can break the season.
Tariffs can hit both ends — what you spend and what you earn.
It’s Not Just Economic, It’s Emotional
Uncertainty kills confidence.
When you don’t know if your main export market will still be there in six months, it’s hard to plan. Should you invest in that irrigation system? Rent more land? Buy new equipment? Or sit tight and hope for the best?
For many farmers, especially family-run operations, trade policy isn’t just dollars and cents, it’s generational. It’s the pressure to maintain land that’s been in the family for a century. It’s the fear that you might be the last one to farm it.
Tariffs don’t just affect spreadsheets. They affect lives.
The Other Side of the Coin: How Tariffs Could Help Farmers Long-Term
While the short-term impacts of tariffs can be painful, especially for export-heavy commodities, there are some who argue that tariff protections, when structured properly, can offer long-term benefits to American agriculture.
Tariffs are designed to level the playing field. When foreign countries flood the market with cheap agricultural imports, it can undercut domestic producers who are held to higher environmental, labor, and safety standards. Tariffs can serve as a buffer of sorts, giving U.S. farmers a fighting chance to compete on price while still upholding quality and compliance.
In theory, if tariffs encourage more localized or regional production, they could help rebuild supply chains, support rural economies, and boost national food security. Some policy advocates also suggest that long-term tariff structures could incentivize value-added agriculture, where producers process and sell more of what they grow, rather than just exporting raw commodities.
There’s also the hope that temporary tariffs spark innovation. If farmers can’t rely on cheap foreign inputs, they may invest more in sustainable practices, soil health, and closed-loop systems that reduce dependence on volatile markets.
Of course, all of this hinges on careful policy, smart timing, and real follow-through. But it’s worth noting: not every farmer sees tariffs as a pure threat, many see them as an opportunity to reshape the future of agriculture, and better the future.
So What Can Farmers and Ag Businesses Do?
While no one farmer can control global policy, there are practical steps to stay resilient in a changing trade landscape:
- Diversify markets — Explore local and regional buyers, specialty crops, or direct-to-consumer sales where possible.
- Invest in soil health and sustainability — Resilient farms are more cost-efficient and can weather financial pressure better.
- Stay informed — Know your crop’s export exposure. Watch trade news, USDA reports, and commodity futures. Be proactive.
- Tell your story — Whether through social media, newsletters, or advocacy groups, the more the public understands what farmers face, the more support you build.
The Future of Trade in Ag: Unpredictable, but Not Hopeless
Tariffs may come and go, but the need for clear, informed communication in agriculture is constant. Farmers and agribusinesses don’t just need policy updates, they need context. They need writing that connects the dots between global politics and field-level reality.
Regardless of the current global landscape, the future of agriculture isn’t just shaped in Washington, it’s also shaped at your local farmers market. Shake the hands and support the people growing your food. Buy local, buy direct.
Bobby Pulte
Agriculture Copywriter | bobby.pulte@gmail.com | www.bobbypulte.com
Creating content that informs, engages, and moves the industry forward.
