U.S. Agricultural Trade Deficit Hits Record High: Will New Tariffs on Canada & Mexico Help?

Athens, GA |

With the agricultural trade deficit reaching a record high of more than thirty billion dollars in 2024, sweeping changes are being discussed to get things back into balance. And chief among them is a tariff being placed on goods imported from Canada and Mexico, which would impact on one sector in particular.

“Some parties may benefit and some may be hurt. So, we have producers of fruits and vegetables in this country. To the extend we put a trade barrier in place and prevent and raise the price of goods that are coming in from Mexico, say for fruits and vegetables, it might make fruit and vegetable products in the United States more competitive. So, it might actually raise the welfare of domestic fruit and vegetable producers,” says Michael Adjemian, Professor of Agriculture & Applied Economics.

As for consumers, potential price increases at the grocery store from these proposed tariffs might just depend on the time of year.

“There’s different growing seasons for products depending on the country that they come from. Right now, US consumers are used to consuming fruits and vegetables year around, but we have a specific season for growing those products in the United States. So, if we limit the trade between the US and Mexico, the price of the products that we import from Mexico will be higher seasonally,” says Adjemian.

This policy would also have an impact on the export market as retaliatory tariffs would likely be the byproduct. However, those effects might not be long lasting if the US is able to cultivate new partners.

“Domestic agricultural producers export quite a bit of what we produce. And so, to the extent that, tariffs overseas are put in place as retaliation to the tariffs that the United States is putting into place, then that can actually reduce the profitability or the revenue that is able to be generated by those exports. On the other hand, because these are bilateral tariffs, it may be the case that US exporters can find alternative markets for their products. So, after a period of adjustment, it may be the case that prices even out,” says Adjemian.

That forced expansion might also be a net positive in the long term as it would showcase American goods to other countries.

“It may be the case that by learning we can expose consumers around the world to just how good US agricultural products are. And maybe we’re forced to through policy, through tariffs, find alternative markets, then that may expand, kind of the market access in the long run, especially if these tariffs aren’t kind of put in place for a long period of time if at all. So, we potentially may see new markets opening to our goods,” says Adjemian.

However, there is also a possible downside to limiting trade with two of the largest importers of US agricultural goods.

“If other countries retaliate to our tariffs that we put into place, and the limit, the supply of US products that they purchase, then they may start to, and other countries around the world may start to invest in agriculture and start to produce products that compete with our exports,” says Adjemian.

By: Damon Jones

Georgia Farm Bureau Unites County Leaders to Strengthen Agriculture Advocacy

Perry, GA |

Georgia Farm Bureau recently hosted more than one hundred and fifty county presidents from all over the state under one roof – an event that’s meant to facilitate the chance for county, grassroot leaders to fellowship, communicate, and learn more about the organization they are representing on a local level.

“Everything we do and everything we advocate for starts at the county level. At the local level, it doesn’t come from top down, it comes from the counties up. Which is why we say we are the grassroots organization, for agriculture in Georgia. So when you get all of the people from all over the state together in one place where they can talk to each other, and they all got similar problems, they all have some of the similar solutions. And, when they can talk to each other and maybe sit in some of these breakout sessions that we’re doing, it speaks some ideas that they can take back home, or they can tell us how they want things to be done as a state organization,” says Georgia Farm Bureau President, Tom McCall.

Of course, being a grassroots organization that is the voice for the state’s ag industry comes with an active and engaged membership, which is why during one of the breakout sessions, county presidents were educated on the political landscape and empowered to become advocates and promote advocacy efforts back in their counties.

“Legislators, they are very busy people and it makes the most difference when they can put a face with a name behind an organization. So when we have this huge member base behind us and more members reaching out, calling, even texting, writing, or hosting events and meeting those legislators face to face, then it creates more of a physical community for them to connect with rather than sending a letter and then maybe just seeing a signature or a bunch of signatures and a bunch of names,” says Amelia Junod, GFB Advocacy & Policy Development Specialist.

Of course, having engaged members that advocate is vital to the future of the industry and the organization, however, one important part of that is having a unified and consistent message for those outside of the industry and organization to hear.

“We know that consistency builds credibility and as an organization that’s been around for more than a hundred years, we’ve got a lot of credibility already, but there’s still so many people that don’t know who we are and what we do as an organization. It’s our hope that we can empower these really talented, grassroots level leaders, to go out and have those conversations with prospective Farm Bureau members, and having consistency in that messaging helps to ensure that whether they’re joining in North Georgia or South Georgia or middle Georgia, that they understand that Farm Bureau is the trusted voice of agriculture; that we serve farmers and ranchers and rural communities of all types, that they understand that we support one another, that we speak with the united voice and that we give back to our communities. We do that because everyone depends on a successful American agricultural system, and it’s our job as Farm Bureau to work alongside farmers and ranchers to make sure that our food, fuel and fiber, supplies are safe, sustainable, and secure,” says Austin Large, Senior Director for Membership & Organization Development for AFBF.

By: John Holcomb