American farmers say they appreciate trade agreements that help them remain competitive in world markets. But they add that the accords are useless if all parties don’t comply with the terms of the deals.
Don Schiefelbein is a farmer and rancher in Kimball, Minnesota, where he and his six brothers run the cattle and row crop operation started by their father in 1959. He said American agriculture is so efficient that less than 2 percent of the U.S. population feeds the United States and most of the world.
“When so few can produce so much, it allows the 90 percent of our population to work every day to make our lives better,” Mr. Schiefelbein said.
During a House Ways and Means Committee field hearing on his ranch on July 10, Mr. Schiefflebein said U.S. ranchers produce 18 percent of the world’s beef with only 6 percent of the world’s cattle.
However, he and other farmers testified that efficiency can be a burden when America and her trading partners don’t comply with the trade agreements they make. Specifically, they voiced concerns about the United States-Mexico-Canada Agreement (USMCA) and America’s lack of enforcement of its provisions.
“We want free and open trade for everybody,” Mr. Schiefelbein said.
Under the agreement, the countries were to open their markets for a wide range of goods. But the witnesses said Canadian restrictions on dairy imports and Mexico’s decision to block genetically modified corn jeopardized the livelihoods of American farmers who depend on international trade.
“I cannot overstate the importance of trade to the agriculture industry,” said Caroline Olson, vice president of the Minnesota Farm Bureau Association and a farmer and hog producer.
She said U.S. farmers send about 20 percent of their products to international markets. In 2022, this accounted for $196 billion in sales for American farmers. Ms. Olson said international trade keeps her 110-year-old farm profitable.
Ms. Olson’s farm grows organic produce and finishes hogs for market. She said pork is a hot commodity across Europe and Asia, especially organ meats and other items that are big sellers in the United States. She said the USMCA is essential for keeping the playing field level for all parties.
“We are encouraged that the U.S. has been working through the USMCA’s processes to dispute behaviors by Canada and Mexico,” she said.
The USMCA went into effect on July 1, 2022, replacing the North American Free Trade Agreement (NAFTA). NAFTA had governed trade between the countries since Jan. 1, 1994. NAFTA’s stated purpose was to eliminate tariffs and ensure fair trade.
Even before the deal was finalized, then President Donald Trump threatened to impose a 5 percent tariff on Mexican imports unless the Mexican government limited illegal immigration. An agreement was reached, and the tariffs were avoided.
Mr. Trump made similar threats over Canadian steel and aluminum imports in 2020. The U.S. imposed a 25 percent tariff on steel and a 10 percent tariff on aluminum. Canada retaliated by levying surtaxes on steel, aluminum, and other products imported from the United States.
Brad Vold and his family operate Dorrich Dairy in Glennwood, Minnesota. He said farmers can’t operate like manufacturers. According to Mr. Vold, the farmer plans his annual work based on what he expects the market to do. That includes the effect that trade agreements will have on particular markets.
He pointed out that the farmer can’t warehouse excess stock since his product has a shelf life. When a country shuts down dairy imports, as Canada did, the farmer with no place to send his milk could be ruined.
“You don’t just get on the phone and call another processor,” Mr. Vold said. “Without enforcement, these agreements will end up hurting us instead of helping us.”
Mr. Schiefelbein agreed. He said that American farmers produce the best food and agricultural products in the world, and ensuring they have access to international markets will benefit everyone.
“Fair trade is good when you have the best product.”
