By Scout Nelson
On Friday 10 February 2025, press conference with Minnesota’s senior Senator, Amy Klobuchar, Minnesota Farmers Union (MFU) President Gary Wertish voiced significant concerns over the administration's decision to impose new tariffs. These tariffs include an additional 10 percent on Chinese goods and a temporary stay on a 25 percent tariff on goods from Canada and Mexico, which are crucial trading partners for Minnesota.
In 2023, nearly half of Minnesota's exports, totaling $10.4 billion, were to Canada and Mexico, supporting over 118,000 jobs in the state. The imposition of these tariffs reintroduces economic uncertainty for farmers still grappling with the financial repercussions from similar policies enacted in 2018.
Wertish emphasized that the prior tariffs led to decreased agricultural earnings and prompted international markets like China to invest in alternative sources, such as Brazil and Argentina. This shift not only reduced U.S. market share but also contributed to environmental issues like deforestation.
Wertish also highlighted the specific impact on local agriculture, noting that the additional 25 percent tariff on potash from Canada would increase production costs for corn and soybeans by $1.70 and $1.42 per acre, respectively. This cost increase poses a significant challenge for farmers, as they cannot pass these expenses onto the consumers of their grains. The fear is that these added costs may reduce overall farm income, potentially driving farmers off their land at a time when the industry needs more, not fewer, farmers.
The MFU works as a nonprofit organization advocating for the interests and quality of life of family farmers, ranchers, and rural communities in Minnesota. Its mission is to foster stable economic conditions for agriculture and to support the sustainability of rural areas. The recent tariffs threaten these goals by creating instability and distrust among international trade partners, potentially causing long-term harm to the agricultural sector's viability in Minnesota and beyond.
Photo Credits:minnesota-farmers-union
Categories: Minnesota, Business