The nonpartisan policy institute Center for American Progress says rural communities have been disproportionately affected by the current policy environment.
President and CEO Nerra Tanden says, “We’ve got farmers that can’t stay above water, and we have consumers that can’t afford food, so that system is not working,” she says.
Senate Ag Committee member Peter Welch says the farm economy is being hit the hardest by the Iran war, with no clear end in sight.
“You get a $1,500 extra charge when you fill up your combine – that hurts!” he says. “People are seeing the effects of inflation, but the diesel has been immediate, the fertilizer has been immediate, and the loss of markets has been immediate.”
He says tariffs with Canada are also disrupting business on both sides of the border, especially in rural areas.
“Jasper Hill Cheese – they’ve got a million-dollar piece of equipment on the Canadian side of the border they want to bring in,” he shares. “They have to pay $500,000 more under the tariffs to get it. They can’t do it. We’ve got a manufacturer who makes snow moving equipment and sells to Canada. They’re losing the sales because under these tariffs, the buyer is going to have to pay another $250,000.”
Iowa Farmers Union President Matt Russell says federal ag investments add to consolidation.
“Right now what we’re seeing is disinvestments around economic philosophy,” he says. “We’re choosing big players, we’re choosing agribusiness, we’re choosing global companies versus investing in and choosing rural people.”
Welch says farmers earning less than the cost of production is a clear sign that ag programs and the system are not working.
During the Center’s recent Down to the Roots event, Welch said he’d support a farm bill that includes a longer lead time for states to implement changes within the Supplemental Nutrition Assistance Program.
