'We need trade, free trade': Soybean farmers 'frustrated' with tariffs

Last week, the Trump administration imposed tariffs on all goods from Canada and Mexico and added to existing tariffs on China. Those countries responded by levying retaliatory tariffs on goods imported from the U.S.

American farmers have been feeling the impact, especially soy farmers;  soybeans are the number one American export crop, and China is the largest market for them.

Caleb Ragland — a ninth-generation Kentucky farmer and  president of the American Soybean Association — says he’s concerned about the future of the farming industry.

“ We depend on exports for our livelihood as farmers,” Ragland says. “We produce many more soybeans than we consume here domestically, so we're extremely dependent on foreign markets, and particularly China.”

Ragland says that he has already noticed the impact of Trump’s tariffs; the soybean market has fallen, and he’s concerned about more potential retaliatory tariffs to come.

“The farm economy is already struggling,” Ragland says, “and this is another hit that we can't stand.”

In response to the falling market, Ragland says that he and other farmers are doing everything they can to avoid spending money.

“It puts fear in the marketplace and makes it hard to make long-term investments,” Ragland says. “We're looking at a further decrease in our cash flow, and we're already operating at negative margins with where the prices currently are.”

Agriculture Secretary Brooke Rollins and Trump have floated the idea of exempting certain agricultural products from tariffs. Ragland says he met with Rollins and urged her to seek solutions that help American farmers.

Trump delayed some of the tariffs on Canada and Mexico until April 2, but Ragland is pushing for longer-term solutions, specifically with China.

“ I challenge our leadership to look at trade deals and find ways to break down barriers instead of build walls with tariffs,” Ragland says. “We need trade, free trade, and a lot of it.”

Ragland is a longtime Trump supporter. He voted for Trump three times and says he just wants to see the president do something to help the U.S. farming industry.

“ One of his good characteristics of President Trump is his ability to negotiate and make deals,” Ragland says. “I want to see my president go out and make some good deals for trade instead of using tariffs, which I hope he's using as a tool, but long-term, American agriculture can't stand to lose export markets.”

In response to rising prices and falling markets across industries, Trump has said that short-term hardship will be necessary for long-term economic growth. But, Ragland says, not everyone in the farming industry will survive that hardship.

Ragland fears a repeat of the 1980s, when a generation of farm families was unable to continue in the industry due to declining markets and high interest rates

Additionally, tariffs have already disrupted the industry. In 2018, during Trump’s first term, he placed a 25% tariff on some Chinese goods, resulting in retaliatory tariffs from China. It impacted the soybean market; before the first Trump tariffs, about 33% of U.S. soybeans were exported to China. Now, that number has fallen to 25%.

“ We want to see our farming families do well, and this is not a good situation right now,” Ragland says. “The outlook is grim.”

Lynn Menegon produced and edited this interview for broadcast with Catherine Welch. Grace Griffin adapted it for the web.