Jim May, a fourth-generation farm owner in Sparta, Michigan, equates his profession to a daily gamble. As planting season nears, May faces typical challenges like weather, crop health, and profit margins. However, stagnant US crop prices and rising production costs add to the unpredictability. New tariffs on potash, mostly imported from Canada, limit his ability to purchase enough for his soybean fields. Equipment upgrades are on hold, and his sons, who oversee the apple orchards, are uncertain about labor availability for harvest. "I have to cut things out because, on the other end, it's not going to come in — we're not going to get it," May told Bridge Michigan.
In Michigan, agricultural exports reached $2.9 billion in 2024, but US tensions with Canada, Mexico, and China raised concerns about production costs and retaliatory tariffs. These issues, along with uncertainties surrounding federal USDA grants, the H2B visa program, and a long-term farm bill, add to the challenges. President Donald Trump acknowledged potential short-term issues from his trade policies, urging farmers to endure "a little bit of an adjustment period" for future benefits.
Michigan's agricultural sector is focused on changes to US trade policy, fearing restricted markets, reduced profits, and job losses. The Michigan Agri-Business Association warns that tariffs could disrupt Michigan's trade with Canada and invite international competition. Canada and China have increased tariffs on US agricultural products, and US tariffs on imports could affect Michigan farmers' potash access. A Michigan company is developing a potash reserve near Evart with a $1.26 billion loan guarantee from the US Department of Energy. However, this facility will take years to become operational.
In March, the Trump administration reduced Canadian potash tariffs to 10% and included potash in an executive order to boost critical mineral production. USDA Secretary Brooke Rollins emphasized that the administration would ensure fair treatment for farmers by foreign trading partners. Michigan Farm Bureau President Ben LaCross expressed optimism about the administration's stance, acknowledging agriculture's challenges.
State Rep. Luke Meerman sees market share growth opportunities for US farmers. However, he notes the vulnerability to tariff retaliation: "We do get caught with the short end of the stick in tariff wars."
Federal budget cuts and funding freezes also affect Michigan farmers, impacting projects on land conservancy, pest management, and food banks. Organizations like the VFW National Home in Eaton Rapids and Michigan food banks face funding challenges due to these changes. USDA's recent $10 billion relief payments do not cover specialty crop growers, a significant part of Michigan's agriculture. Tim Boring of MDARD notes the limitations in addressing these funding gaps, given the reliance on federal funding sources.
Source: Bridge Michigan