President Donald Trump has kicked the Mexico and Canada tariff can further down the road for potash and other imports following a pressure campaign from prominent ag figures.
American Farm Bureau Federation President Zippy Duvall said he had been engaging with administration trade officials to convey the tariffs’ impact on U.S. ag. Multiple lawmakers, including House Ag Committee Chair Glenn “GT” Thompson, R-Pa., had also been pushing for tariff exemptions to help farmers.
Duvall said in a statement that the pause “will ensure farmers and ranchers can continue to export American agricultural goods to both countries without fear of retaliatory tariffs.”
Prime Minister Justin Trudeau has already retaliated against more than $20 billion worth of U.S. exports. Canadian officials told AP that this first wave of retaliation will remain in place. A second, larger package has been postponed, however.
But, but, but: Tariffs will have to be implemented at some point if the administration wants to use the revenue to fund tax cuts. And Treasury Secretary Scott Bessent reiterated Thursday that’s still the goal.
Speaking at the Economic Club of New York, Bessent said that "substantial" tariff revenues would pay for key parts of Trump’s tax agenda, like eliminating the tax on tips.
Take note: Trump told reporters April 2 is the day to watch. That is both the potential start date for reciprocal tariffs and the day Trump has floated for an end to the Mexico and Canada tariff reprieve.
That will be “the big one,” he said. “There’ll be no getting out of it.”
Trade compensation called ‘Band-aid on an open wound’
Agri-Pulse Newsmakers spoke with farm group leaders at Commodity Classic about the impact of tariffs on their industries.
“What we need is trade, free trade, open trade, more of it, new markets, more markets than already exist,” said Caleb Ragland, a Kentucky farmer and president of the American Soybean Association. “We’ve got to find ways to increase demand for our products because long-term, that’s the only thing that’s gonna keep the farm economy strong and productive.”
Ag Secretary Brooke Rollins has sought to assure farmers they’ll get compensation for Trump’s trade wars. “Market relief is great, but the reality is, that is a Band-Aid on an open wound,” Ragland added.
Leaders of the National Corn Growers Association, National Association of Wheat Growers, National Sorghum Producers, and the Association of Equipment Manufacturers also talked to Newsmakers.
Newsmakers will be available today at Agri-Pulse.com.
Dems mull vote for FDA commissioner
Some Senate Democrats aren’t ruling out voting for Trump’s nominee to lead the FDA, even though he’s aligned with Robert F. Kennedy Jr. Martin Makary, a Johns Hopkins surgeon, appeared before the Senate Committee on Health, Education, Labor and Pensions on Thursday for his confirmation hearing.
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Sen. John Hickenlooper, D-Colo., said Makary doesn’t have a lot of management experience but has clearly studied it and made “good points” about the size of the workforce at FDA. He told reporters he hadn’t made up his mind on Makary.
Sen. Andy Kim, D-N.J., said he also was still undecided. “I’ve struggled with some of the comments that he’s made, and I just thought he was very evasive on some basic questions today,” Kim said. He added that he’ll submit additional questions for the record.
After the hearing, Sen. Tammy Baldwin, D-Wis., said she was concerned that Makary “has moved considerably towards abandoning his own scientific approach to things” in favor of Kennedy’s approach.
Dems look to save fellowship program at Hispanic-serving schools
Senate Ag Committee ranking member Amy Klobuchar, D-Minn., and about a dozen Senate Democrats are urging Agriculture Secretary Brooke Rollins to reinstate a suspended fellowship program that organizes direct meetings between staff of Hispanic-serving institutions and USDA.
According to the USDA website, the E. Kika De La Garza Fellowship Program has been “suspended pending further review.”
In a letter Thursday, the lawmakers said the decision to suspend the program "threatens the U.S. agricultural workforce pipeline and the opportunities this program provides educators and students nationwide.”
Carbon pipeline faces another setback
The future of a multi-state carbon pipeline is now in question after South Dakota’s governor signed a bill prohibiting such projects from using eminent domain to acquire right of way. The bill was a response to landowner concerns about Summit Carbon Solutions’ 2,500-mile pipeline.
The pipeline is designed to capture carbon from 57 ethanol plants so producers can lower carbon intensity scores and qualify for tax incentives. Summit said the project will still move forward “in states that support investment and innovation.”
“There are a lot of quirky things about this process. We are taking a wait-and-see approach as the courts sort things out,” said Patrick Gruber, CEO of Gevo, an ethanol-to-jet fuel producer.
Less than half of consumers optimistic on grocery prices
Consumers are less optimistic than they were at the start of the year about grocery prices, FMI – The Food Industry Association said Thursday, citing survey data.
At the start of January, 56% of shoppers surveyed said they had positive expectations for 2025. But asked again at the end of February, 45% of consumers felt the same way.
“That 56-to-45 journey shows the anxiety that shoppers are experiencing again, as headlines drive their shopping decisions, but also as they assess their own financial position,” Andy Harig, a vice president at the group, said on a webinar Thursday.
Final word
“Was there ever any doubt that the President would fight for America’s farmers?” – Ag Secretary Brooke Rollins, commenting on X on the news that President Donald Trump used profanity to express displeasure with Canadian Prime Minister Justin Trudeau over Canadian trade protections for its dairy sector.
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