“the White House is reportedly confronting a very different reality: one in which Trump’s trade war leaves many Americans worse off, with farmers likely to be hit the hardest.”
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“Agriculture Secretary Brooke Rollins told reporters last week that the White House has asked her to “have some programs in place that would potentially mitigate any economic catastrophes that could happen to some of our farmers” as a result of a trade war.”
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“The time to work that out might be running short. Trump has promised to ramp up his trade war with Mexico and Canada in early April, and the administration also plans to start slapping so-called “reciprocal tariffs” on imports from other countries on April 2. As the various trade wars escalate, farmers are likely to be on the front lines—because American agricultural exports are an easy target for retaliatory tariffs from other countries.”
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“That’s exactly what happened during Trump’s first term, when his trade war with China caused American farmers to lose a sizable chunk of one of their largest export markets. When farmers complained about it, the Trump administration provided a $28 billion bailout via a New Deal–era program at the Department of Agriculture.
Some of that is already happening. In response to tariffs imposed by Trump in February, China slapped new tariffs on a wide range of American farm exports, including beef, chicken, corn, cotton, dairy, fruits, pork, soybeans, and various vegetables. Both Canada and Mexico have indicated that they plan to retaliate against American tariffs with new levies targeting American agricultural goods.”
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“That’s the nasty thing about trade wars. Not only do they harm manufacturers and consumers seeking to buy raw materials and finished goods from abroad, but they also harm domestic producers (like farmers) who lose access to foreign markets and therefore earn less money. Tariffs hurt Americans who want to eat avocados from Mexico, and Americans growing soybeans to sell there. There are a lot more losers than winners—and that’s before taxpayers get put on the hook for bailouts.
There should be no taxpayer-funded bailouts for American farmers who get burned by Trump’s trade wars. If the White House is concerned about the consequences that higher tariffs will have on American agriculture, there is an easy solution: Don’t impose them.”
“The Agriculture Department has halted millions of dollars worth of deliveries to food banks without explanation, according to food bank leaders in six states.
USDA had previously allocated $500 million in deliveries to food banks for fiscal year 2025 through The Emergency Food Assistance Program. Now, the food bank leaders say many of those orders have been canceled.
The halting of these deliveries, first reported by POLITICO, comes after the Agriculture Department separately axed two other food programs, ending more than $1 billion in planned federal spending for schools and food banks to purchase from local farmers.”
“The Agriculture Department has axed two programs that gave schools and food banks money to buy food from local farms and ranchers, halting more than $1 billion in federal spending.
Roughly $660 million that schools and child care facilities were counting on to purchase food from nearby farms through the Local Food for Schools Cooperative Agreement Program in 2025 has been canceled, according to the School Nutrition Association.”
“Trump talked repeatedly about runaway grocery prices during the campaign, pledging that if elected, paying over $4 for a carton of eggs would be a thing of the past. “When I win, I will immediately bring prices down, starting on Day 1,” he pledged. But after
“House Agriculture Chair G.T. Thompson (R-Pa.) said Saturday that he will oppose any spending measure that leaves out the billions in extra aid farm state Republicans were seeking for farmers still reeling from Donald Trump’s 2018 trade war, inflation, a delayed five-year farm bill reauthorization and a raft of other economic pressures. Republicans in agriculture-heavy states and some Democrats have warned about a crippling economic crisis hitting rural America, which overwhelmingly supported Trump in the last election.”
His plans increase the deficit, which is inflationary.
Large and broad tariffs are inflationary.
A massive crackdown on illegal immigration will also be inflationary as without cheap labor, making products will be more expensive or won’t happen here at all–particularly agricultural goods and housing.
Trump wants to end the independence of the Federal Reserve. Trump has been in favor of lower interest rates, which will increase inflation.
“Starvation. Poverty. People struggling to buy medicine and fuel.
Disaster happened after one government fell under the influence of the world’s environmental extremists.
Many “experts” say pure nature is best. United Nations officials now tell politicians that the climate “crisis” demands countries make all sorts of sacrifices, like cutting nitrogen waste.
Much of that waste comes from synthetic fertilizer, so activists applauded when Sri Lanka’s government decided to become the first country to really take their advice. Sri Lanka banned all synthetic fertilizers.”
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“Suddenly, the same farms produced much less food. Food prices rose 80 percent.
One result: riots. As my new video shows, thousands swarmed the president’s mansion. Some had a cookout on his lawn.
“Sen. Marco Rubio (R–Fla.) led a bipartisan group of lawmakers—all of them from Florida—in submitting a petition to U.S. Trade Representative Katherine Tai seeking “an investigation” into what the lawmakers call “the flood of imported seasonal and perishable agricultural products from Mexico.” They ask Tai to invoke Section 301 of the Trade Act of 1974 to impose “trade remedies” that will protect American growers from the scourge of…low-priced produce.
While they don’t come out and say it directly, it’s obvious from the letter that Rubio and his colleagues are seeking tariffs on Mexican produce. Section 301 is the same mechanism the Trump administration used to impose wide-ranging tariffs on goods imported from China. It’s a law that grants the executive branch broad, unilateral power over trade.
Rubio and the other lawmakers say the Mexican government is subsidizing its domestic agricultural infrastructure as part of a scheme to undercut the prices charged by U.S. growers. “Mexico poses a direct threat to Florida’s seasonal and perishable agricultural industry,” they conclude.”
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“Anyone who has taken a basic economics class should be able to explain what’s happening there. A high level of supply tends to push prices downward. Whether grown in Mexico or Florida, it makes sense that cucumber prices would be at their lowest when there are a lot of cucumbers in the market.
But that’s not how Rubio and his colleagues see it. Instead, the petition describes this minor pricing difference as “a clear attempt to displace Florida cucumbers from the U.S. market.”
Take a moment to enjoy the fact that some of the most powerful men and women in the U.S. government are freaking out over the idea that American consumers might get to save a few cents on their next cucumber purchase. Then amuse yourself with the optics of American agricultural special interests—which are, of course, pulling Rubio’s strings here—complaining about subsidies, as if “direct government aid” doesn’t account for nearly 40 percent of American farmers’ annual income.
“These Florida politicians are following a time-honored tradition of trying to help their local constituents at the expense of Americans in other states, who benefit from low-priced fruits and vegetables regardless of where they are grown,” says Bryan Riley, director of the free trade initiative at the National Taxpayers Union Foundation. “
“As part of a $33 billion funding request for Ukraine, the Biden administration last week proposed sending $500 million to American farmers with a goal of boosting production of wheat, soybeans, rice and other commodities, in order to make up for some of Ukraine’s food exports that have dried up since the Russian invasion.
But some agricultural economists say they’re unsure why the administration would move to boost subsidies for crops that are already fetching high prices, our Meredith Lee reports.
“I don’t think that this sort of intervention from the government makes any sense, other than to read it in a pure political sense, that this is something they feel like they need to do,” said Joe Glauber, former chief economist at USDA during Agriculture Secretary Tom Vilsack’s previous tenure during the Obama administration.
The funding request includes food aid programs that buy U.S. commodities and send them to countries in need, including many in Africa and the Middle East that relied on Ukraine and Russia for staples like wheat and sunflower oil and are now reeling from shortages and price spikes.
By the numbers: Under the Biden administration’s proposal, $100 million would go toward providing a $10-per-acre payment to farmers who plant a soybean crop after a winter wheat crop in 2023. Another $400 million would fund a two-year increase in loan rates for U.S. producers to encourage them to grow more select food commodities, including wheat, rice and oilseeds like soybeans, sunflowers and canola.
The Agriculture Department claims the proposal would help stabilize rising U.S. food prices and provide food for foreign countries in need, by helping American farmers grow 50 percent of the wheat normally exported by Ukraine, among other things. That plan, however, would probably also require the U.S. to step up funding for federal aid programs that buy and ship U.S. commodities abroad. Otherwise, wealthier countries like China would likely buy up the extra supply on the open market.
Biden’s proposal comes despite prior statements by key White House and USDA officials that high commodity prices alone would encourage U.S. farmers to increase their crop production and help meet global demand in the wake of Russia’s invasion of Ukraine. The president on Thursday described the plan as “good for rural America, good for the American consumer and good for the world.””
“it is actually the agricultural aspects of the pact with China about which the world should be most concerned.
The importance of Ukraine’s remarkably fertile soil for global grain supply has gained some attention, amid concerns the conflict will lead to sharp price increases. But the reality is Russia’s control of Ukrainian grain shipments will likely have far greater consequences.
After just one day of the invasion, Russia effectively controlled nearly a third of the world’s wheat exports, three quarters of the world’s sunflower oil exports, and substantial amounts of barley, soy and other grain supply chains. Furthermore, Ukraine alone accounts for 16 percent of the world’s corn exports and has been one of the fastest growing corn producers — a dynamic particularly critical to meeting China’s rapidly growing demand for corn. Importantly, while hydrocarbon production can be immediately surged in different places to meet shifts in requirements, grain production cannot be surged in the same way, and even a major expansion cannot make up for the sheer volume of agricultural output that Russia now controls either directly or indirectly.
Most of the focus has rightly been on the invasion’s impact on people in Ukraine’s most populous cities — but in the background, Russia is completing a hostile takeover of the country’s grain-rich regions and their associated transportation infrastructure. Critically, however, Russia does not even need to fully control Ukraine’s agricultural lands to weaponize the food supply chains they anchor.
As the following map shows, there are only two points of maritime access that Russia needs to dominate in order to be in control of Ukrainian grain shipments: the Kerch Strait that connects the Black Sea with the Sea of Azov, and the 17 ports in and around Odessa.”