Why Farmers Care So Much About Trade

An important lesson I’ve learned over the years is that success is built on the foundation of strong relationships. We are stronger when we work together, building trust, exploring new opportunities and navigating challenges. The same idea of relationships can also be said for our trading partners and if we want to keep agriculture moving forward, we need to ensure those connections remain strong.

With 95% of the world’s consumers living outside of the U.S., keeping strong ties with global partners ensures our farmers have access to the markets they need. In fact, over 20% of U.S. farm income is derived directly from exports, and every dollar of those exports generates more than two dollars in additional domestic economic activity. With the new tariffs introduced this week, however, farmers are concerned about the impact on our agricultural exports, along with imports of essential farm tools, as our trading partners announce retaliatory tariffs in response.

Farmers have long supported efforts to ensure fair trade and are looking to expand access to more global markets. We understand that tariffs can be used as a short-term tool to keep U.S. products competitive, and we are hoping to see these tariffs resolved quickly before farmers bear the brunt. That’s why in a recent letter to the administration, we urged leadership to consider the full impact these tariffs could have on our farmers, ranchers and rural communities.

Tariffs on Mexico, Canada and China

The top destinations for our farm exports are Mexico, Canada and China. In 2024 alone, we sent over $30 billion of agricultural goods to Mexico, $28 billion to Canada and $25 billion to China. If you were to add the export value of these top three trading partners, it would account for half of our total agricultural exports. The disruption of any of these markets would lead to higher costs, fewer customers to buy our products and ripple effects across our entire economy.

Beyond exports, our trade relationships are also critical for agricultural imports as many farmers rely on access to essential tools and resources for their farms. For example, approximately 85% of potash fertilizer used on U.S. farms comes from Canada, and the increase of cost for a tool like that, especially during planting season, will make it even harder for farmers operating on razor thin margins. That’s also just one example of a squeeze on farmers that could extend to our rural communities and prices at the grocery store.

Retaliatory Tariffs

It’s important to keep in mind that tariffs don’t happen in a vacuum and other countries retaliate. Already, China has placed up to 15% additional tariffs targeting farm exports and Canada has announced retaliatory tariffs of 25% on many products. Farmers are often first to get caught in the crossfire and these retaliatory tariffs will begin to price us out of many countries, such as Mexico, Canada and China, and they will go looking for better deals without us.