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Policy Memo
Topline
American farmers are being hammered by Trump’s tariff tax. From higher input costs (think fertilizer and equipment) to decreased access to markets amidst trade wars, American farmers are taking it on the chin. The Trump Tariff Tax is Increasing the C
For more information, please contact AAF Policy Director John Shelton at jshelton@advancingamericanfreedom.com
Farmers Are Reaping Trump’s Tariff Whirlwind
TOPLINE: American farmers are being hammered by Trump’s tariff tax. From higher input costs (think fertilizer and equipment) to decreased access to markets amidst trade wars, American farmers are taking it on the chin. The Trump Tariff Tax is Increasing the Cost of Farmers’ Essentials: • Nitrogen fertilizer prices have risen 15% in the last year, stunting farmers’ corn yield.
o DIG DEEPER: In August, farm groups sent a letter to the Trump Administration
raising the alarm that fertilizer prices were reaching “disastrous levels”. • The effective tariff rate for farmers’ inputs has increased 1,255% since President Trump took office.
Export Markets Drying Up Due to Retaliatory Tariffs and Trade Wars • 20%+ of U.S. agricultural products are exported, employing more than 1.2 million Americans. • Canada, China, and the EU account for 40% of U.S. ag exports and have imposed retaliatory tariffs. Mexico, the #1 export market, may follow shortly. • During the 2018 China-US trade war, American soybean exports to China plummeted 77%.
o NOW: China has no plans to import additional American soybeans this year. TODAY - American Farmers Are Facing the Following Tariffs:
Tariffs before Herbicides 23.7% 5.9% Tractors 16% 0%
Insecticides 20% 5.9% Parts 13.3% 0%
Mixed or Organic Fertilizer 16.8% 0% Seeds 12.4% .4%
Fungicides 16.7% 5.6% Overall ag inputs 12.2% .9%
• Source Bankruptcies, Bailouts or Both Are Coming: • The first Trump administration provided $57 billion in direct federal bailout
payments to farmers in addition to crop insurance and subsidized loans. • Family farm bankruptcies are up 57% over last year. BOTTOMLINE: While President Trump ran on “Make Our Farmers Great Again”, Republican members could bear the brunt of this frustration at the ballot box, as they represent the top 20 ag districts. The Trump Tariff Tax threatens to send farms to bankruptcy or a bailout.