Farmers declare crisis: How a trade war is decimating US agriculture and threatening your food supply
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Across the fields and farms of America’s heartland, the alarm bells are no longer distant echoes—they’re a deafening roar.
Farmers are warning that the US agricultural sector isn't approaching a crisis; it’s already neck-deep in one.
What’s really happening to the US agricultural sector?
Trade wars, tariffs, and a weakening market might soon hit your grocery bill.
The United States faces mounting pressure to broker critical trade deals, especially with China.
Treasury officials from the Trump administration described the tariff war as "unsustainable," but for farmers, the devastation isn't hypothetical— it’s happening now.
Agricultural exporters have been blindsided by China's sharp retreat from purchasing US farm goods.
As canceled orders pile up and layoffs sweep the sector, Peter Friedmann, Executive Director of the Agriculture Transportation Coalition (AgTC), issued a stark warning: “It is a full-blown crisis already.”
The damage, however, extends far beyond pork.
Across the agricultural export sector, producers of wood pulp, grass seed, forage, and other commodities report immediate order cancellations, stranded shipments, and expensive diversions.
In many cases, exporters now face goods abandoned at ports or costly re-routing to alternative markets with less demand and lower profits.
At a recent stakeholder meeting, Kristi McKenney, Executive Director of the Port of Oakland, a key hub for US agricultural exports, warned that tariff-induced cargo slowdowns could trigger job losses and destabilize the region’s economy.
Unlike other ports heavily reliant on imports, Oakland maintains a nearly 50/50 import-export balance, making it particularly vulnerable to any decline in agricultural shipments.
California’s exports of beef, pork, dairy, and produce—destined for markets like China, Japan, Taiwan, and South Korea—are now under serious threat.
As McKenney emphasized, retaliatory tariffs could significantly erode California’s market share for high-value perishables, disrupting the nation’s No. 1 refrigerated export gateway.
For many exporters, finding replacements for China’s massive market has proven nearly impossible.
The ripple effect is already driving down prices, forcing farmers and businesses to slow production, cut back on purchasing from local suppliers, and, increasingly, lay off workers.
One lumber exporter reported a 20% decline in market value.
A major hay exporter in central Washington said it was forced to reroute most of its crop.
Once destined for Hong Kong and mainland China, to smaller markets in Japan, Dubai, and Taiwan.
As a result, the company laid off a quarter of its workforce, warning, "No one can replace all the volume that China buys."
Agricultural businesses now face an untenable choice: sell at a loss or cease operations altogether.
Beginning this fall, Chinese-built ships calling on US ports will face port fees of up to $1.5 million—an expense that could easily spill over onto American exporters.
While bulk agricultural shipments are exempt, containerized exports, including high-value items like refrigerated meats, fruits, vegetables, nuts, cotton, and soybeans, are not.
Roughly 25% of US agriculture by volume and 55% by value relies on containerized shipping, making an exemption critically important to farmers' survival.
The Agriculture Transportation Coalition is urgently lobbying for relief, warning that the fees could further strangle an already battered sector.
They warn that the consequences of unchecked tariffs, shipping costs, and market instability could permanently damage America’s agricultural infrastructure.
"So much of our future lies in the hands of so few," one hay exporter wrote to AgTC.
"We plead for those few to take a very long, careful look at what can be done to keep shipments flowing while they work out the trade imbalances and perceived differences," he added.
For consumers, the crisis could mean more than just higher prices.
A prolonged downturn in US agriculture could reduce food variety, drive long-term price hikes, and erode the security of the nation’s food supply.
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How can we better support our farmers and agricultural workers, who play such a crucial role in feeding our nation and the world? Share your thoughts and experiences in the comments below, and let's advocate for policies that protect American agriculture.
Farmers are warning that the US agricultural sector isn't approaching a crisis; it’s already neck-deep in one.
What’s really happening to the US agricultural sector?
Trade wars, tariffs, and a weakening market might soon hit your grocery bill.
The United States faces mounting pressure to broker critical trade deals, especially with China.
Agricultural businesses now face an untenable choice: sell at a loss or cease operations altogether. Image Source: Auto Edge / YouTube
Treasury officials from the Trump administration described the tariff war as "unsustainable," but for farmers, the devastation isn't hypothetical— it’s happening now.
Agricultural exporters have been blindsided by China's sharp retreat from purchasing US farm goods.
As canceled orders pile up and layoffs sweep the sector, Peter Friedmann, Executive Director of the Agriculture Transportation Coalition (AgTC), issued a stark warning: “It is a full-blown crisis already.”
China cancels major US pork orders
Newly released data from the US Department of Agriculture reveals a sobering milestone: China has canceled 12,000 tons of US pork purchases—the largest withdrawal since 2020.The damage, however, extends far beyond pork.
Across the agricultural export sector, producers of wood pulp, grass seed, forage, and other commodities report immediate order cancellations, stranded shipments, and expensive diversions.
In many cases, exporters now face goods abandoned at ports or costly re-routing to alternative markets with less demand and lower profits.
Ports under siege: Oakland’s warning
The crisis reverberates far beyond the fields and farms.At a recent stakeholder meeting, Kristi McKenney, Executive Director of the Port of Oakland, a key hub for US agricultural exports, warned that tariff-induced cargo slowdowns could trigger job losses and destabilize the region’s economy.
Unlike other ports heavily reliant on imports, Oakland maintains a nearly 50/50 import-export balance, making it particularly vulnerable to any decline in agricultural shipments.
California’s exports of beef, pork, dairy, and produce—destined for markets like China, Japan, Taiwan, and South Korea—are now under serious threat.
As McKenney emphasized, retaliatory tariffs could significantly erode California’s market share for high-value perishables, disrupting the nation’s No. 1 refrigerated export gateway.
For many exporters, finding replacements for China’s massive market has proven nearly impossible.
The ripple effect is already driving down prices, forcing farmers and businesses to slow production, cut back on purchasing from local suppliers, and, increasingly, lay off workers.
One lumber exporter reported a 20% decline in market value.
A major hay exporter in central Washington said it was forced to reroute most of its crop.
Once destined for Hong Kong and mainland China, to smaller markets in Japan, Dubai, and Taiwan.
As a result, the company laid off a quarter of its workforce, warning, "No one can replace all the volume that China buys."
Agricultural businesses now face an untenable choice: sell at a loss or cease operations altogether.
New shipping fees add another burden
The newly announced SHIPS Act, approved by the US Trade Representative, threatens to worsen the crisis.Beginning this fall, Chinese-built ships calling on US ports will face port fees of up to $1.5 million—an expense that could easily spill over onto American exporters.
While bulk agricultural shipments are exempt, containerized exports, including high-value items like refrigerated meats, fruits, vegetables, nuts, cotton, and soybeans, are not.
Roughly 25% of US agriculture by volume and 55% by value relies on containerized shipping, making an exemption critically important to farmers' survival.
The Agriculture Transportation Coalition is urgently lobbying for relief, warning that the fees could further strangle an already battered sector.
A desperate plea for action
Farmers and exporters are calling on policymakers to act swiftly.They warn that the consequences of unchecked tariffs, shipping costs, and market instability could permanently damage America’s agricultural infrastructure.
"So much of our future lies in the hands of so few," one hay exporter wrote to AgTC.
"We plead for those few to take a very long, careful look at what can be done to keep shipments flowing while they work out the trade imbalances and perceived differences," he added.
For consumers, the crisis could mean more than just higher prices.
A prolonged downturn in US agriculture could reduce food variety, drive long-term price hikes, and erode the security of the nation’s food supply.
Read more:
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