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Jul. 16, 2025 By Neil Caskey, CEO of the National Corn Growers Association as it appeared in Agri-Pulse
Farmers are eager to know what comes after July 9, the date when Trump's pause on reciprocal tariffs ends. That's because resuming high tariffs on imports, and the threat of reciprocal tariffs placed on U.S. exports, creates economic uncertainty, while also damaging long-term relationships with our foreign partners. Developments during and following the trade war from Trump's first term are illustrative of some of the long-term consequences of tariffs. Following the 2018 trade war, China, the world's largest agriculture export market, turned to other suppliers and began investing heavily in Brazil, our largest agriculture competitor, building up port and highway infrastructure to more easily facilitate grain exports. A renewed trade war only encourages continued movement away from the U.S. as a reliable global supplier, which cannot be easily reversed even if our trade situation improves. That is why we need the administration to quickly focus on brokering new agreements that will confirm our commitment and ability to supply foreign export markets with the products they need. Without it, market uncertainty is sure to escalate. As sales of the 2024 corn crop year wrap up and the 2025 crop nears harvest, farmers are already facing increased costs of production and a lower valued corn crop due to falling corn price. The anticipated 2025 crop value is $2.4 billion lower than if valued at the 2024 average corn price and $5.5 billion lower than if valued at the 2023 average corn price. And we know from a recent study from my organization that lower corn production has a negative impact on rural communities and the national economy. The nation's 300,000 corn farmers are ready to supply the world - and improve the country's trade outlook in the process. They just need a level trading field in order to compete. Recent reports of trade missions, negotiations and new trade deals are incredibly welcomed - and desperately needed - for America's farmers. While we were happy to see that the president recently secured a deal with the UK that could expand ethanol exports, there are several other markets that are ripe for a good deal. We encourage the administration to act expeditiously on an agreement with these countries. A framework with Vietnam is a positive start. With over 100 million people, Vietnam has rising disposable incomes, rapid rates of urbanization and changing dietary preferences, all of which increase demand for food and livestock production. The country's demand for animal feed ingredients like corn and soybean meal is rapidly growing but only 20% of its need is being met with domestic production. Most of the country's imported grain comes from South America, but a recent reduction in its tariff on U.S. corn shows the potential of a greater trading relationship if barriers are eliminated. India is another example of a country ripe for increased exports of both corn and products made from corn. For example, if U.S. corn farmers and biofuel producers were able to supply India's sustainable aviation fuel market, it would represent a $434 million opportunity in the first year of the relationship alone. In addition to new markets, opportunity exists to bolster relationships with long-term trade partners like Canada, Mexico, Japan, and South Korea. America is an agricultural powerhouse, ready to supply our country and many others around the world. Given the chance, corn farmers will deliver and strengthen the economy for all of us in the process. Neil Caskey is CEO of the National Corn Growers Association. Tweet |
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