Ongoing tariff discussions between the United States and China have done nothing to help an already depressed farm economy.
That’s the perspective of Kansas Farm Bureau Commodities Director Mark Nelson. He tells KVOE News tariffs are generally bad news because they increase the cost of business while decreasing the prices paid out to farmers and ranchers. And, he says, that’s already starting to play out with this situation.
Prices had been stabilizing due to drought in the Central Plains and South America. To Nelson, the timing couldn’t be much worse for tariffs, let alone the tariff discussion.
Nelson says most farmers are doing what they can to limit expenses as the soft economy continues, and he says ag producers should continue that approach at least through this year.
Nelson’s comments come as the United States and China have been either raising tariffs or threatening to do so for several weeks. His comments also come with the United States either in the process of re-examining trade agreements like the North American Free Trade Agreement with Canada and Mexico. Nelson cautions the United States may be losing some of its international influence by renegotiating or walking away from prior trade accords. The end results may not be favorable to US ag producers or consumers because the countries that are still involved may rework those agreements to their best interests, not those of the United States.
