Jennifer Gilkerson never imagined that her West Virginia farm’s freeze-dried fruits would become embroiled in political debates in Washington, D.C.
However, she learned last Friday that funding for a US Agriculture Department program that assists schools and food banks in purchasing products from local farmers like her had been reduced.
Without those federal funds, Gilkerson believes local schools will be unable to purchase her freeze-dried fruits, which she has already spent thousands of dollars preparing to produce.
“We are just in shock. We just don’t know how to respond to it all. “We thought this was sacred and truly untouchable,” Gilkerson said. “Everyone thinks all farmers voted for this, but we did not vote for this.”
Farmers have found themselves caught in the middle of President Donald Trump’s escalation of trade wars and efforts to cut billions of dollars in spending, leaving an increasing number struggling to find markets for their products and risking steep losses in the coming year.
Trump acknowledged the impact of his trade policies on farmers, telling them in his speech to Congress this month that there will be “a little bit of an adjustment period” and that farmers will have to “bear with me again.
” In a CNBC interview this week, Treasury Secretary Scott Bessent stated that current federal spending levels are unsustainable and that the economy will need to go through a “detox period” as cuts are implemented.
Farmers across the country, from small organic berry growers in Maine to large-scale hog producers in Iowa, say the policy changes could cripple their businesses if not resolved soon, causing long-term damage to the US agriculture industry.
“I think any farmer will tell you that we will take some short-term pain, but do not make this a long-term extended trade war, because that just won’t be good for agriculture or the country in general,” said Bob Hemesath, an Iowa farmer who grows corn and raises hogs.
“I understand that President Trump believes that this is how he will create better markets in the long run. I hope he is correct. However, I am concerned that once those markets are lost to other suppliers, they will be difficult to reclaim.
U.S. farmers rely on exports because the country produces more of many products, such as corn, than it can consume. Foreign buyers are also more willing to purchase agricultural products that Americans dislike, such as chicken feet and cow tongues.
However, those overseas markets are now in jeopardy as Trump threatens to increase the amount of tariffs levied on products imported into the United States, causing other countries to retaliate with their own tariffs on US goods.
“I’ve been doing this for 45 years, and every time there’s a trade dispute with another country, they recognize that our soft underbelly, where we really get sensitive, is when you start messing with our food exports,” said Chuck Conner, president of the National Council of Farmer Cooperatives. “That has always been the case, and that is the case this time around on steroids.”
Farmers say they are already seeing the effects of Trump’s additional 20% tariff on Chinese imports, which prompted China to impose an additional 10% to 15% tariff on U.S. agricultural products such as pork, wheat, and corn.
Following Trump’s brief 25% tariff on all Canadian imports last month, cattle farmers in Maine received notices that their grain prices would rise by 15%, according to Sarah Alexander, executive director of the Maine Organic Farmers and Gardeners Association.
Trump later reversed some of the tariffs, but he warned that more will follow. A farmer also told Alexander that his price quote for a greenhouse increased this week after Trump imposed a 25% tariff on all steel and aluminum imports.
“Consumers are going to see these impacts if farms are not able to carry through with their plans or their costs increase dramatically, whether it’s in what products are actually available this year or that the cost is going to have to go up because farmers can’t shoulder all of those changes themselves,” according to Alexander.
Tariffs hit amid issues with federal aid
Federal funding cuts and freezes, as well as staffing shortages at the Agriculture Department, have had a ripple effect on the US agriculture industry. Farmers say they rely on USDA grants and loans to make their products more affordable to American consumers and to weather the market’s natural volatility for agricultural commodities.
While Gilkerson works to find a new market for her farm’s freeze-dried fruits, another group of West Virginia farmers has been affected by funding cuts to a separate Agriculture Department program that promotes local foods.
A group of farmers had been working on launching Appalachian Cellar, a brand of West Virginia-grown products. After months of work, they were about to start distributing the brand to grocery stores and other food distributors when the Agriculture Department informed them that their funding had been cut off as of January 19, the day before Trump took office.
“I’ve got 31 farmers who are pissed off,” said Spencer Moss, executive director of the West Virginia Food and Farm Coalition, who was preparing to launch the line of products. “We are approaching the planting season, and we should be ramping up, but we aren’t. We’re unable to ramp up.”
Not only will the group not receive funding for future expenses, but it is also unclear whether it will be reimbursed for $100,000 in grant-related expenses, as planned, Moss said.
“This is the economy of rural America. West Virginia is a completely rural state, so developing its agriculture economy is critical,” she said. “These farmers pay property taxes, own businesses, and frequently serve as commissioners or school board members. These are the forces that keep rural communities thriving. As a result, there appears to be a general divestment in rural communities.
Seth Kroeck, a blueberry farmer in Maine, said he received a $50,000 grant to spread 200,000 cubic yards of mulch on his wild blueberries to increase crop yields. He has the truck, fuel, and manpower ready to spread the mulch and must get started as the planting season begins in a few weeks.
However, he is unsure whether he will be reimbursed by the Agriculture Department, as he knows of several other farmers who are still waiting for payment for equipment purchased with Agriculture Department grants.
“It has really sent a chill among a lot of farmers,” Kroeck told reporters. “When you sign a contract with the USDA, you expect them to pay on time. You would never expect them not to keep their end of the bargain. It makes me concerned about our future direction. So much of what we do with each other is based on that fundamental trust, and to have it shattered is extremely concerning.”
There is uncertainty as farmers attempt to make decisions at the start of the planting season in many parts of the country.
In Virginia, John Boyd is unsure whether his Agriculture Department loan will be approved in time for him to purchase the seeds he needs to start planting his soybean crops for the year. Boyd typically receives an Agriculture Department loan in the spring to help cover some of the planting costs until he can harvest the crops in the fall and use the proceeds to repay the loan.
But the loan money has yet to arrive, and he has been unable to obtain an update from the Agriculture Department on when or if it will be available. With only a few days until he needs to start planting his seeds, Boyd said he’s desperately trying to work out a payment plan with his seed supplier or find another way to cover the cost.
“It’s planting season, and there’s a cloud of uncertainty among the agriculture industry with this president,” said Boyd, president of the National Black Farmers Association. “I’ve got real debt and real expenses.” But I also have the desire to farm in some way. I can’t tell you how, but I’m making calls and trying to put some plans in place to get us through this crisis the president has created.”
Soybean prices, which have already fallen due to a glut of supply in the market as production has increased globally, have tumbled in recent years, and he fears they will fall even further in a trade war with China.
“What’s alarming here to me as a leader in the farm community and civil rights work is that it’s the farmer that is the first getting affected, and it was the farmer that delivered for this president,” Mr. Boyd said. “They were all in for Trump, and they are the first in line to be affected.”
Soybean prices, like those of other agricultural products such as corn, wheat, and pork, are determined by a larger commodities market that takes into account global supply and demand. Tariffs can reduce demand for US agricultural products from a major buyer, such as China, and thus lower prices.
“In order to get a fair price, you need a good, steady market, and the president is disrupting the market,” Boyd pointed out.
Farmers have already been through Trump’s trade wars in 2018 and 2019, when he imposed tariffs on China, which retaliated with tariffs on US farm products, causing sales to plummet.
In response, Trump established a payment program during his first term to compensate some of the affected farmers. The amount of payments made was roughly equal to the revenue generated by the United States’ tariffs on Chinese imports.
Trump has not stated whether he will use a similar payment plan again. Commerce Secretary Howard Lutnick stated that Trump’s actions are intended to improve the long-term outlook for farmers by eventually creating a more level playing field overseas.
“He understands that the best way to get our farmers, our ranchers and our fishermen’s produce and products in the rest of the world — which they block, India blocks our farmers, all these countries block our farmers — the way to grow it is to make deals with them where they have to understand the power of the U.S. economy,” Lutnick said during an interview with Bloomberg TV on Thursday.
Meanwhile, farmers are figuring out how to pay their current bills and cut costs to reduce their losses.
In Iowa, Hemesath, who serves on the board of the National Corn Growers Association and as president of Farmers for Free Trade, said he expects to lose money on his crops this year if policy does not change in the coming months.
“We’ve grown accustomed to market volatility. There’s no doubt about it, but we need to look for new markets and expand on the ones we already have,” he said. “So long term, we definitely have to get this resolved to stay viable.”
