'Hang on': Nebraska farmers face uncertainty as trade tensions threaten key export markets

CENTRAL CITY, Neb. — As farmers prepare to put seed on the ground, one third of their income comes from exports and a looming trade war brings uncertainty.

“Did you see what the markets did today?”

It’s all the talk and Mark McHargue says it can change by the hour. Just days after President Donald Trump announced sweeping tariffs he put them on hold while doubling down on China. McHargue, the Nebraska Farm Bureau president says that essentially closes a huge market.

“If you had any question do we want to trade with China the answer would be no we don’t with these tariffs,” he said.

Nebraska is an export powerhouse sending beef, corn, soybeans, feed, and other products around the world.

“We have built our ag systems here in Nebraska on exports so 30 percent of all ag commodities we raise get exported somewhere,” McHargue said.

It can vary by the year but the state’s top trade partners generally include our neighbors in Mexico and Canada followed by Asian markets in South Korea, Japan, and China. Trade adds value to every bushel of grain and every pound of beef and pork that’s sold.

“All that money we get from trade would be profit side of category or lose less so situation where we're at break event on row crop we take trade out and that's what farmers are nervous about it takes them well below breakeven,” McHargue said.

As his son Andrew delivers seed, McHargue acknowledges it’s been a challenging year to prepare for.

“Should we put any soybeans in the ground?”

He will because of the crop rotation benefits but analysts tell us profitability has driven more acres of corn. If soybeans are shut out of China, that’s a major market closed. McHargue says it’ll be a year to watch for rallies and sell when you might make a little.

“We need to be careful that it doesn’t control our lives because these things can mentally disrupt your life,” he said.

Planting season is a fresh start but it’s left farmers wondering where this crop will go.

“The future’s still very bright for agriculture we’re just truly in unprecedented times and I think it’ll look very different in a couple months. I’m not going to say which way but hang on.”

McHargue said the best case scenario would be for Pres. Trump to announce new trade deals soon to expand access into growing markets around the world.