On Jan. 20, the nation welcomed its 47th president as Donald J. Trump became commander-in-chief.
Trump is no stranger to Washington as he served as the 45th president from 2017-21, and many in the agricultural community are watching to see what direction he plans to take the country.
Few will question that he enjoys being the master of dealmaking. Trump’s strength is his willingness to strike compromise when it appeals to him. That has led to measured optimism about opening new markets, although his tariff policy could muddy progress.
While livestock producers have experienced favorable prices from the markets, there is concern about increasing input costs—interest, fuel and feed—plus persistent drought in cow-calf regions of the High Plains that has curtailed expansion of the nation’s beef herd. Pork prices have been holding their own in a good sign for swine producers, but the highly pathogenic avian influenza has influenced poultry and eggs production.
Thankfully consumers—so far—have been willing to pay higher prices at the retail level. Whether they will continue to do so remains to be seen as persistent inflation pressure is an economic condition Trump has inherited from his predecessor, Joe Biden. Trump has promised to make a difference in lowering inflation. Farm economists know it is a complex problem to solve with no quick fixes.
Crop producers rightfully have concerns about prices. On Jan. 14, the price reported at Dodge City per bushel for wheat, corn, sorghum and soybeans was $4.98, $4.96, $4.25 and $9.65, respectively. Producers know that means thin margins heading into a season when they revisit their marketing plans and weigh input costs that also include seed, fertilizer, fuel, equipment and interest.
A new Congress has Republicans in charge of both agriculture committees, most notably Sen. John Boozman in the Senate. A recent extension of the 2018 farm bill that ag lawmakers from both the House and Senate committees acknowledge is woefully inadequate does at least buy time.
Crop insurance remains a foundational block of a farm bill, to paraphrase House Agriculture Committee member Tracey Mann, a Kansas Republican whose first district is one of the largest farm districts in the nation. A new bill must have a strong safety net for farmers, which is what Boozman, Mann, House ag chairman GT Thompson and many other Republicans seek. They know a safety net includes nutrition assistance, a priority for many Democrats, that will have to be debated. One encouraging sign is the appointment of Sen. Amy Klobuchar and Rep. Angie Craig, both of Minnesota, as ranking members, which means there will be an appreciation for what High Plains farmers and ranchers are facing.
Trump’s willingness to wade into farm matters will be tested early as many producers and industry observers are anxious to see if campaign rhetoric will translate into success and a reversal of recent trends of declining farm income. It is going to be an interesting next four years in America.
Dave Bergmeier can be reached at 620-227-1822 or [email protected].