Soy Farm Doug Rebout in Janezville, Wisconsin.
(Rich Finnieg)
Today, agriculture looks much different than villas and red sheds that many Americans can imagine. On the soybean farm and corn arc in Janensville, Wisconsin, a tractor of $ 650,000-controlled GPS-Plants 3500 hectares for just over a week. “When it’s time, it’s time,” the arc said Nation. With 5 Am up to 10 eveningSeven days a week, he and his family are ready to survive the uncertainty of agriculture, or concerns, weather or tariffs.
Since 2018, Rebout, a second-generation family farmer and president of the Wisconsin Soya Association, has been reducing the prices for soybeans due to President Donald Trump’s tariff policy. And he’s not alone. Throughout the state in the Barron district, Tanner Johnson, the manufacturer of the first generation of the soybean and the executive committee of the US Soy Association, watched as soy prices decreased by 50 percent, forcing him to refer to smaller markets.
In April, the US is exported to China were the subject The total tariff of 135 percent after Trump introduced a 10 percent tariff for certain agricultural products in March, except 125 percent collection. In May, both countries reached an agreement, and Trump reduced total tariffs from 145 percent to Chinese imports to 30 percent. China has reduced its 125 percent tariff to 10 percent, emphasizing the volatility of the market and how farmers are not sure what policy can be imposed on.
In 2023, Johnson could sell the soy bousher about $ 13 to $ 15. Now he gets $ 9. Rebute stated that for his farm, which collects 80,000 Bushev a year, that a small drop is $ 400,000. Meanwhile, maintaining the farm is expensive, said Rebout, emphasizing that one tractor costs more than $ 600,000.
Dr. Thomas Kemp, Chairman and Professor of the Department of Economics at the University of Wisconsin -Eo Claire, said Wisconsinites and Americans should take care of artificially adjusting prices through tariffs, as this violates the supply chains, which leads to exceeding the production of some goods and insufficient products. “Because our exports leaves our country, and then they become tariffs abroad, it reduces demand that reduces prices,” Kemp explained.
Wisconsin farmers will bring about $ 1.3 billion annually. According to data Association of soy Wisconsin. Now, according to Kempa, Wisconsin can see more than $ 100 million lost annually from the tariffs. During the previous trade war, the Trump administration in 2018 and 19, the US agriculture survived more than $ 27 billion, WSA reports, and Soya was 71 percent of this.
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As the farmers lose this profit, they spend less money, harm other companies that sell them seeds, fertilizers, tractors and more. On the other hand, soy buyers enjoy lower prices, saving money they can spend elsewhere in the economy. But Johnson said the tariffs also affected the costs of entrance, such as the fertilizer that has doubled; So he pays more to grow the farm and get half the cost of what he did two years ago. “In any business, apparently, except for agriculture, we would look at it and said,” We need to stop doing it. Nation.
These sudden price changes can lead to significant economic violations. In the case of soy farmers, many have put millions into specialized equipment and infrastructure, taking into account soy. When prices fall, Kemp explained, they can be forced to move to other cultures, and their equipment becomes useless or even insignificant.
Farmers do not sell directly to other countries. They sell local elevators, or a business that buys grain from farmers and keeps it with the intention of selling it, negotiating with foreign markets for importing or exporting soy on their behalf. Johnson said Brazil-Congregated by one one; The second is Argentina. “We used to have really really good relations with a lot of foreign markets, and since then Brazil has moved and took our place on top of the hill,” he said. “It really affects their relationship and soy farmers (which) have been working for 50 years.”
Recently, representatives of Chile, Uzbekistan, Ukraine, Austria, Mexico and UK visited Rebout to discuss trade and establishing relations. Recently, Wisconsin built a port to Milooki, which allowed direct exports to Europe and North Africa through the Saint -Lorentry maritime path to help diversify access to the market, he said. But they do not fully compensate for the lost trade with China, Mexico and Canada.
“I doubt it will be for all this, but it will be for that,” Kemp said. “Farmers probably would already try to sell there for these tariffs. In other words, what we see is, we see how they look for the second best alternatives.”
Recently, the US Export Exports Council enabled Johnson to visit Tunisia to interact with stakeholders across the Soy Soy supply chain in the Maghrib region. He explained not on the rumors that he was doing on his farm, which distinguishes it from the world competitors through environmental assistance and the excellent quality of soy by storing goods in cold conditions.
“I kept us soy in the right hand and the Brazilian soy in my left hand. The quality was incomparable. We obviously were the highest product, and customers prefer it. Only now they can buy Brazilian soybeans so cheaper that, despite the higher quality soy, they are economically forced to buy more Brazil.”
Both Johnson and Rebouut advocate the work through the WSA, consisting of 14,000 farmers and is supported by the head of the Washington Policy Program, which works with the US SOY (ASA) as the Labik National Team. They participated in the Forums “Soy Issues” through ASA, meeting with the speakers of the industry or heads of other agencies such as EPA. They also visit DC annually on behalf of the WSA to meet with legislators on both sides of the passage to talk about the key problems they face.
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Johnson said Wisconsin is approaching the point when some family farms that make up 94 percent of all farms in Wisconsin may close with the lack of cash flows. He said it may not happen this year, but it can only be one year.
“We definitely feel the pressure, and when you start to lose family farms and local economies, you lose a lot of local participation in small economies, and here’s how you find yourself with empty centers.” We are closer to big problems than the blue sky when everything does not change quickly. “
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