Tariff talk dominates national chatter these days. In southern Minnesota, where agriculture and ag-related industries dominate the economy, the unease over tariffs is intense.
Todd Marotz, head of production at Wakefield Pork in Gaylord and a member of the National Pork Producers Council, fears tariffs could be devastating to the state’s pork industry, which has just gotten back on its feet in the past year or so.
“Last year pork exports were a bright spot. Exports added $66 in value per pig sold.” Canada, China and Mexico were big buyers of Minnesota pork.
Caesar Larson, who farms near Amboy and Lake Crystal, said farmers are worried about tariffs.
“There is an uneasiness in the farm community because of the uncertainty. Export markets are very important to us,” Larson said.
“I’m sympathetic to the America First agenda. The administration is seeking to level the playing field. But I don’t want it to become America Alone.”
While traditional farm operations that grow corn and soybeans or raise hogs are concerned about tariffs reducing the price of what they get for their products and raising the price of their inputs for materials such as fertilizers and chemicals, smaller operations that grow vegetables, fruits and other products also have worries.
Dan Zimmerli and his family own a Community Supported Agriculture operation near Waldorf called Cedar Crate Farm. They sell vegetables directly to consumers and sell them at the Farmers’ Market.
He said that tariffs haven’t so far impacted their operation greatly. “But it’s the back and forth, on-again off-again thing with tariffs with this administration. That’s not good business. It’s putting uncertainty into things.”
Zimmerli said that while things haven’t hit his operation directly yet, he thinks consumers are being affected and starting to be more cautious financially.
“We sell directly to consumers. Everyone has to eat, but I don’t know what choices consumers will be making that might affect us.”
One thing that Zimmerli is watching is the tariffs placed on metals. They were planning to build another large hoop house, which is similar to a greenhouse and has metal hoops covered with plastic to protect plants and increase warmth.
“The metal hoops are the most expensive component of the structures. We’re looking at building a new one this year, but now we’re kind of in a wait-and-see mode.”
Pork producers on edge
Marotz said food and livestock should be free of tariffs as they are a matter of food security for America.
He said the National Pork Producers want good trade agreements, not tariffs, which can trigger retaliatory tariffs from other countries.
He said the United States and Canada have had a good and mutually beneficial free trade agreement and thinks tariffs would threaten that.
“Pork is big for our economy. We have to protect jobs and our industry. It’s good to be in an industry that provides a safe, delicious protein source.”
Marotz said that so far most tariffs on pork have been threatened but not put in place.
He said the talk about tariffs is about a lot of different pork products and different levels of tariffs are being threatened on different countries.
He said the uncertainty makes it difficult for the industry to do risk management.
Morotz said one of the only bright spots for pork producers recently has been that feed costs have been lower because corn and soybean prices have fallen.
Losing export markets
Larson said farmers in this area have typically lost money per acre in recent years and even federal farm safety net programs haven’t been enough to make up for losses.
He said losing foreign export markets because of new tariffs could have a long-lasting impact on ag.
“Once you displace markets it’s hard to get them back. So I’m concerned about the long-term effect,” Larson said.
“The administration alludes to great things for agriculture down the road, but most farmers have experienced losses the last two or even three years.”
He said farmers had a brief appearance in President Trump’s recent speech to Congress.
“It was nice to be at least remembered and mentioned. And the secretary of agriculture has said things that were hopeful. But I don’t know that we have anything concrete (to grab onto) as an industry.”
Larson said grain prices are down and there is an oversupply of grain in America and potentially in the world. He said the future of ethanol, which boosts the corn market, is also uncertain under the new administration.
CSA farm concerns
Zimmerli fears tariffs could hit his and other farm businesses in a variety of ways.
“I’m concerned about fuel cost. We get a lot of fuel and electricity from Canada so we’ll see those costs increase.”
He said cuts in the federal Local Foods Purchase Assistance program are also going to hurt schools and others who get help buying fresh produce, as well as those who grow and sell it.
In March, the U.S. Department of Agriculture announced it was canceling hundreds of millions of dollars of funding that go to help buy food for school children, food shelves and others.
Zimmerli has participated in the program, through the local food recovery program and the Wooden Spoon in Mankato.
“Having that cut — and it was a big cut — is going to affect a lot of children and others who are food insecure. It takes out fresh produce for schools and others who are food insecure.”
Finding a new path
The Minnesota Farmers Union has been holding town halls around the state to get input from farmers and others on the potential impact of tariffs. A recent gathering in Sleepy Eye drew about 60 people.
Ted Winter, executive director of the Farmers Union, said there needs to be a renewed effort to get those with different political philosophies to work to help society.
“It’s important that we do things together, and that’s why these town halls and these meetings are important, to bring people together, to garnish a value of hope and concern that our government will be there for our children and our grandchildren,” Winter told MPR News after the Sleepy Eye town hall.
“I think there was a personal commitment to each other tonight, a value that we can do better if we work together, because we all do better.”
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