By TIM ALEXANDER Illinois Correspondent
WATERLOO, Ill. — With Chinese retaliatory tariffs against U.S. imports climbing to over 80 percent, U.S. farmers are left with little choice but to search for new and expanding markets — preferably in those countries less affected by President Trump’s Tariff Wars 2.0. This is according to National Corn Growers Association (NCGA) President Ken Hartman, who told Farm World that though China is not the top importer of U.S. corn, market signals are erupting from the topsy-turvy trade war that indicate an expansion of foreign markets may be necessary for corn to maintain its export market share. “The concern that we have long-term is that some of these countries, obviously China, could seek other (import) markets and Brazil and Argentina could take some of our customers. If we have a tariff for a long period of time, we think that we will lose some of our (sales) to them, but at the same time we are willing to see how things go with the president,” said Hartman, who praised Trump for completing the U.S.-Mexico-Canada (USMCA) trade agreement during the president’s first term in office. “Right now Mexico is our number-one customer for corn, and Canada is our number-one customer when it comes to ethanol made for corn. We’re very concerned with Mexico as far as keeping our relationship there. The president hasn’t put any new tariffs on Mexico since (his initial 25 percent tariffs on February 4), and they still seem to be buying corn from us and we’re doing okay with them,” said Hartman, who was in Illinois tending to his farming operation at the time of his remarks, but had been flying back and forth to Washington frequently to meet with legislators and stakeholders. “Some of the other countries we have concerns with include Colombia, which is a big purchaser of corn from us. (Trump) was going to put a (25 percent) tariff on them (in late January), but they’re negotiating and we’re happy with that so far. We just don’t want to see tariffs for a long period of time, because that is how other countries are going to take away our customers,” he added. Experience and research have shown that U.S. agriculture often bears the brunt of trade disputes and tariff wars, according to NCGA and American Soybean Association economists. “A reignited trade war would reduce both U.S. soybean and corn prices and the combined production area of the two crops. If it were to occur, a trade war would not only reduce the value of production for U.S. farmers but also have a ripple effect throughout the U.S. economy,” the farm economists predicted in October, 2024. “Meanwhile, farmers in Argentina and Brazil would see higher soybean and corn prices and be poised to more rapidly expand their production areas. The economies of these two countries would benefit from rising production value. In short, South America would gain on all fronts at the expense of U.S. farmers and the U.S. economy.” To hedge against an extended, international trade dispute, Hartman said corn growers must seek new and expanded markets — both domestic and foreign — for their products. “Vietnam is an opportunity for us, and I know some of the livestock folks are hoping we can get a trade agreement worked out there. India is a huge opportunity for corn growers because they are at the point where they need to buy corn,” he said, adding that NCGA is hoping the president can convince Mexico to relax the 18 percent tariff they currently have on imported ethanol products. “We want free trade but we also want fair trade, where everyone is on the same playing field,” Hartman said, adding that certain African and East Indies countries also provide growth opportunities for U.S. corn. NCGA leaders have had communications with “some areas of the White House,” according to Hartman, including at the recent Commodity Classic in Denver when corn, sorghum and wheat representatives sat down with Ag Secretary Brooke Rollins. Hartman also paid USDA a visit in March to discuss concerns and opportunities. “We are definitely communicating, and I hope that they are listening to us. We’ve got some good reasoning, and I think some of the things they are doing are for the betterment of agriculture,” he said. NCGA is actively working to get legislation allowing year-round E-15 ethanol access for motorists passed in the House and Senate. Making year-round access permanent law would help compel fuel providers to upgrade their infrastructure to accommodate new tanks and pumping stations, the NCGA president said. “EPA has different things they can do, but if we want E-15 permanent we will need a bill,” said Hartman. On Wednesday, April 9, two days after Hartman’s comments, Trump postponed additional tariffs on all nations other than China for a period of 90 days, stating that those nations that “are cooperating” by entering into negotiations would be spared the latest round of tariffs — for now. Contacted for comment on this development on Thursday, April 10, Hartman told Farm World, “I think we’re just waiting to see what’s going to happen at this point.”
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