The US agriculture industry has initiated discussions with Donald Trump's transition team, focusing on the food business's future under the president-elect's policies, including tariffs and mass deportations. Representatives from the National Grain and Feed Association, alongside the International Fresh Produce Association, are partaking in these talks. The National Council of Agricultural Employers also plans to engage in dialogue.
Key issues at the forefront of these discussions include the impact of proposed tariffs on trade, particularly with significant commodity buyers such as China and Mexico, and the reliance of US agriculture on foreign labor. Advocates are pushing for the expansion of the visa program for temporary workers and urging China to adhere to crop purchase commitments from the "Phase One" trade deal.
Despite Trump's agricultural policies sometimes conflicting with the sector's economic interests, such as the trade war with China affecting soybean exports, the industry is also concerned about the implications of mass deportations on labor availability. The potential expulsion of undocumented workers could exacerbate the labor shortage, impacting fresh produce growers.
The H-2A visa program's expansion is a priority for the International Fresh Produce Association, aiming to address labor needs. Similarly, the National Council of Agricultural Employers is advocating for program expansion and a lower minimum wage rate to mitigate high labor costs driving production outside the US.
With the H-2A visa program seeing a significant increase in use, it highlights the ongoing farm labor shortage. The agriculture sector is exploring solutions to navigate potential tariffs and trade challenges, including ensuring China's adherence to agricultural purchase agreements and addressing regulatory hurdles.
Source: BNN Bloomberg