Lopez: Farmageddon' can't be solved with a bailout alone

"It's harvest time in the Midwest and farmers are bringing in bumper crops of soybeans, corn and wheat. They should be elated. But their best customers are shopping elsewhere as a result of a global trade war ignited by President Donald Trump. Punishing tariffs have created what some are calling Farmaggedon. China, once a top destination for American soybeans, has signaled its displeasure with Trump's tariffs by locking out U.S. farmers in favor of more stable partners in Brazil and Argentina."

"Soybeans are this country's largest agricultural export, valued at more than $24 billion in 2024, with about half usually going to China. But China has made no purchases from this harvest, with disastrous results for American growers. Soybeans are piling up across the Midwest, spilling out of bins and grain elevators from North Dakota to Missouri. And farmers are suffering a double whammy because the costs of the inputs needed to grow those soybeans fertilizer, seeds, potash, equipment are rising, also because of tariffs."

"Much of the potash used by Midwestern farmers comes from Canada. Parts for farm equipment often originate in China or other Asian countries. It's a big concern that farmers are producing a crop that (is) going to cost more to make than it is the revenue that they'd receive, Ohio Soybean Association Executive Director Kirk Merritt said recently. Eroding U.S. share One could argue that farmers should have seen this coming."

Midwestern farmers are harvesting bumper crops of soybeans, corn, and wheat while losing key buyers due to tariffs imposed during President Donald Trump's trade actions. China has stopped purchases of U.S. soybeans, shifting demand to Brazil and Argentina, causing domestic soybeans to accumulate across bins and grain elevators from North Dakota to Missouri. Input costs for fertilizers, seeds, potash, and equipment have risen because of tariffs, squeezing farmer margins. Much potash is imported from Canada and many equipment parts come from China and Asia. Proposed bailout funding would derive from tariff revenues paid indirectly by U.S. companies and consumers.

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