In Kansas City at the Agriculture Outlook Forum, U.S. Secretary of Agriculture Brooke L. Rollins spoke on the current state of the farm economy in the United States and addressed the ways President Trump is supporting American agriculture. U.S. farm production inputs are significantly more costly than four years ago, putting pressure on farmers’ bottom line. Between 2020 and now, seed expenses have increased 18%, fuel and oil expenses increased 32%, fertilizer expenses increased 37%, and interest expenses increased by a whopping 73%.
In order to understand why these critical inputs are persistently elevated, the U.S. Department of Agriculture (USDA) and the Department of Justice signed a Memorandum of Understanding that represents a joint commitment by both agencies to protect American farmers and ranchers from the burdens imposed by high and volatile input costs such as feed, fertilizer, fuel, seed, equipment, and other essential goods while ensuring competitive supply chains, lower consumer prices, and the resilience of U.S. agriculture and the food supply. The Antitrust Division of DOJ will work hand in hand with USDA effective immediately to take a hard look and scrutinize competitive conditions in the agricultural marketplace, including antitrust enforcement that promotes free market competition.
Additionally, labor costs increased 47% since 2020. This increase is driven largely by the high cost of utilizing the H-2A program to secure seasonal labor, specifically the artificially inflated Adverse Effect Wage Rates set by the Department of Labor using USDA data. The USDA Farm Labor Survey was never designed to be used for setting government-mandated wage rates and is duplicative of other DOL data sources. USDA has discontinued this survey. USDA is working daily with the Department of Labor and Department of Homeland Security to build out regulatory changes that can make the H-2A program more affordable and more accessible for American agriculture.
“President Trump has made it clear: America’s farmers and ranchers will never be left behind. The success of our farmers is a national security priority, and at USDA we are looking at every option to ensure the future viability of American agriculture. The last Administration’s policies drove up inflation and ignored the needs of farmers and ranchers while not opening new markets abroad. The cost of doing business for farmers and ranchers increased drastically, and commodity prices slumped. The Trump Administration is holding these companies accountable and will investigate why input prices have not come back down,” said Secretary Brooke Rollins. “Relief is already reaching farms and ranches, but more help is still needed. ECAP payments, combined with our international food assistance purchases, help producers navigate market volatility, pay down debt for the 2024 crop year, and move American grown commodities to people in need in countries around the world. American farmers produce the most nutritious, safe, and high-value food in the world, and USDA is proud to stand with them at home and abroad.”
Source : usda.gov