USAid and American Ag

Discussion in 'Economics' started by Sprout, Feb 11, 2025.

  1. Sprout

    Sprout

    IMG_5382.jpeg

    Came across this post, seems like a lot of unintended consequences from the new administration policy shift. Curious what perspectives folks whom trade all things Ag have to say.

    Is this legit or fear porn?


    EDIT: Wow! This post has blown up! Many of you have asked for sources, so I went ahead and edited the post to include those. I tried to use "close to the source" sources as possible. E.g. stories published in ag trade publications, notices from agricultural, trade and manufacturing organizations and, in some cases, links to social media posts where people are personally discussing their experiences. Please keep sharing!

    Folks, it's taken a few days to trickle down, but I'm seeing post after post after post in the ag community social media channels of massive issues impacting U.S. farmers and the U.S. ag economy from Trump's DOGE efforts, tariff wars and the USAID shutdown.

    Here are a few:

    *Cotton and grain growers are losing contracts to long-time Canadian buyers because, even with the tariff pause, Canadian buyers don't trust the stability of U.S. export commerce with Trump in office. Plus, Canadians are just flat-out pissed and avoiding U.S. made/produced goods, including farm products.
    SOURCES:
    https://www.cbc.ca/news/canada/otta...se-farmers-are-reaping-the-benefits-1.7454750

    * Chuck Grassley, of all people, is pleading with Trump to exempt potash from any Canadian tariffs because U.S. potash (a major fertilizer in agriculture) mainly comes from Canada. Impending tariffs will shoot farmers' fertilizer prices sky-high.
    SOURCES:
    https://thehill.com/homenews/senate/5123701-us-imposes-tariffs-on-canada/

    * Corn and soybean farmers are upset because Trump cancelled all of Biden's Climate Smart grants that were supposed to help them offset their adoption of soil health improving new practices like no-till and cover cropping.
    SOURCES:
    https://soygrowers.com/news-releases/soy-growers-urge-climate-smart-payments-to-farmers-to-resume/
    https://www.bloomberg.com/news/arti...ump-to-resume-climate-payments-to-agriculture

    * USAID's cancellation cuts $2 billion straight out of U.S. farmer's pockets from the Food for Peace program which purchased rice, wheat, corn and soy from U.S. farmers and distributed them to hungry nations. In some states and for some crops, USAID was their primary buyer.
    SOURCES:
    https://www.dtnpf.com/agriculture/web/ag/news/article/2025/02/03/usaid-tie-agriculture-usda
    https://www.wbur.org/hereandnow/2025/02/06/usaid-kansas-farmers
    https://www.cjonline.com/story/news...own-mean-for-kansas-sorghum-crop/78300587007/

    * USDA NRCS is cancelling conservation contracts and leaving farmers holding the bag. These are things like fence improvements and upgraded water lines that boost farmer efficiency while also conserving the environment. Plus, the way they work is the farmer has to do the work first, then once they are done, the NRCS reimburses them. So now farmers that have spent the money to do the work are being told the NRCS won't honor their contracts.
    SOURCES:
    https://farmpolicynews.illinois.edu/2025/02/usda-freezes-conservation-other-direct-farmer-funding/
    https://sustainableagriculture.net/...-harm-on-farms-and-in-communities-nationwide/

    * California farmers are PISSED because his "turn on the taps" PR move did nothing to combat California wildfires and instead wasted 2 BILLION gallons of water being held in reservoirs for summer irrigation.
    https://www.npr.org/2025/02/07/nx-s...ed-billions-of-gallons-of-water-in-california
    https://abc30.com/post/central-cali...erns-trump-orders-dam-water-release/15862080/

    * U.S. crop farmers are freaked out over the trade wars since Canada, China and Mexico represent half - let me repeat that again, HALF, of all U.S. agricultural exports!
    SOURCES:
    https://www.wdam.com/2025/02/08/tru...mississippi-farmers-fence-about-local-impact/
    https://www.spglobal.com/commodity-...y-markets-amid-trumps-tariffs-diplomacy-trade

    * Per Trump's freeze on financial contracts, the USDA is withholding funds for the Organic Market Development Grant program and the Transition to Organic Partnership Program, which typically go directly to organic farmers or to non-profits supporting organic farmers.
    SOURCES:
    https://www.eenews.net/articles/usd...ams-leaving-farmers-on-the-hook-for-millions/

    * The shutdown of USAID has been trickling down through multiple ag-focused agencies, including the Soybean Innovation Labs, which were hosted at land-grant universities across the U.S.. These research labs focused on developing new genetics and growing practices in soybeans critical to U.S. and international growers. They had to close the entire program, laying off 30 scientists and researchers in 19 labs across 17 states.
    SOURCES:
    https://www.linkedin.com/posts/pete...qQ?utm_source=share&utm_medium=member_desktop
    https://www.linkedin.com/posts/nath...3Q?utm_source=share&utm_medium=member_desktop

    * K State University lost up to $50 million that was pledged through a USAID Program over the next five years to advance research in “sustainable intensification,” an approach focused on increasing crop yields without expanding agricultural land use, expected to directly benefit Kansas (and U.S.) farmers.
    SOURCES:
    https://thisistopeka.com/2025/02/k-state-losses-50-million-dollars/

    * China's retaliatory tariffs (although not yet on crops, we shall see) are expected to have a major impact on U.S. ag machinery manufacturers, who were already struggling and have had massive lay-offs over the last 12 months. China imported almost $800 million of U.S.-manufactured ag machinery in 2020.
    SOURCES:
    https://www.manufacturingdive.com/news/china-targets-us-farm-equipment-tariffs-Deere-CNH-AEM/739278/

    And it goes on and on and on with new, major issues coming to light on a near-hourly basis. My heart hurts for U.S. farmers and U.S. farm communities, large and small, that are needlessly and thoughtlessly being impacted by this.

    But hey, on the bright side, Trump banned those infuriating paper straws!

    P.S. I'm making this public, so please, share away. I will also update this post as I hear about more impacts.
    —-
    repost from Georgia Lea Smith

    —-
    westmoreland_pops
    “farmers, we have been lied to..”

     
    Last edited: Feb 11, 2025
    piezoe and Picaso like this.
  2. Sprout

    Sprout

    Romp through history. Context on the effect of:
    Fairness Doctrine
    Reagan
    FoxNews
    Distrust of Government

    on rural America

     
    piezoe likes this.
  3. maxinger

    maxinger

    Farmers were already stressed out during President Trump's first term.
    Ag prices were very low as China had alternative source.

    Anyway, there should be millions of positive news as most Americans like President Trump.
     
  4. mervyn

    mervyn

    did the farmers vote for cheetos?
     
  5. ElCubano

    ElCubano

    Lots of people that voted for cheetos are "coming home to roost"... Latinos for Trump, Those working in the Federal Government and Many more.
     
  6. newwurldmn

    newwurldmn

    Muslims in Michigan.
     
    flash crash, Picaso and ElCubano like this.
  7. Sprout

    Sprout

    The second video "Compassion to Sooth the Confusion" gives historical context of how the abolishment of the Fairness Doctrine gave rise to right-wing talk radio & 'News as Entertainment" (FoxNews). This seismic shift led to this state of affairs through fostering the belief that "govt is corrupt".

    Originally intended as a check against the monolithic big 3 of ABC, CBS, and NBC; the shift from broadcasting to narrowcasting had the affect of accelerated political polarization.

    He goes on to say that 1/3 of farmers did not vote for the current administration.
     
    Last edited: Feb 11, 2025
  8. Sprout

    Sprout

    If we could focus on the economic intended and unintended consequences and stay on topic, that would be great. Otherwise, like most threads that devolve into tribal golum reactionary trolling, no insights would be possible.
     
    Last edited: Feb 11, 2025
    piezoe likes this.
  9. MarkBrown

    MarkBrown

    LOL LOL LOL "THE SKY IS FALLING"

    WE HAVE POTASH RIGHT HERE IS TEXAS HOW MUCH YOU WANT ?

    no something else behind it like money under the table.

    * Chuck Grassley, of all people, is pleading with Trump to exempt potash from any Canadian tariffs because U.S. potash (a major fertilizer in agriculture) mainly comes from Canada. Impending tariffs will shoot farmers' fertilizer prices sky-high.
    SOURCES:
    https://thehill.com/homenews/senate/5123701-us-imposes-tariffs-on-canada/
     
  10. newwurldmn

    newwurldmn

    that means an overwhelming majority did vote for the current administration. (Since a only third voted for Kamala, a third party candidate or didn’t vote at all)
     
    #10     Feb 11, 2025