Washington, D.C. — President Donald Trump’s celebration of his trade truce with China and his proposed bailout of farmers demonstrates his administration’s failure to appreciate the long-term challenges facing U.S. farmers. New analysis from the Center for American Progress finds that the administration’s chaotic trade wars, sky-high tariffs, and failed economic policies have deepened the crisis in U.S. agriculture, raising costs, closing markets, and leaving family farmers worse off than before.
“The Trump administration may think that a one-time bailout of farmers or a negotiated purchase commitment from China will solve the problems facing American farmers,” said Ryan Mulholland, senior fellow at the Center for American Progress and co-author of the analysis. “But that shows a disregard for the long-term challenges that have made it harder for farmers to succeed. From rising costs and foreign boycotts to climate impacts and industry consolidation, Trump’s policies are deepening the problems facing the backbone of rural communities across the country.”
According to CAP’s analysis, the administration’s trade and economic policies have worsened nearly every structural challenge facing U.S. farmers:
- Tariffs and trade wars destroyed key markets. Even after China agreed to restart its purchase of U.S. soybeans, much of the damage from Trump’s reckless trade war was already done.
- Costs continue to rise. Trump’s tariffs have greatly raised input prices, squeezing already thin margins and putting more farmers into debt.
- Farm bankruptcies are surging. Court filings show bankruptcies are up 56 percent from last year, with more than half of U.S. farms now losing money.
- Climate shocks and consolidation deepen the crisis. Extreme weather and investor-driven land purchases are pushing smaller producers out, hollowing out rural economies.
- Trump’s bailout of Argentina insults American farmers. The Trump administration was quicker to bail out Argentina than American farmers; and now, Argentina is selling soybeans to China to backfill market share previously captured by U.S. farmers. What is more, Trump is suggesting that the United States quadruple its imports of Argentine beef, potentially devastating U.S. ranchers.
CAP’s analysis calls on policymakers to develop plans to lower input costs, open export markets, invest in climate resilience, and curb corporate consolidation. Without such reforms, the administration’s short-term fixes will only deepen the debt, volatility, and decline facing American agriculture.
Read the analysis: “The Trump Administration Continues To Demonstrate Its Failure To Appreciate the Plight of American Farmers” by Ryan Mulholland and Mark Haggerty.
For more information or to speak with an expert, contact Christian Unkenholz at [email protected].