Tariffs, Lack of Farm Bill Add Uncertainty For Grain Farmers

By Harold Walker

Looming large over grain markets is the impact of tariffs imposed by the United States and the reaction of other countries to them. The immediate result for agriculture was a significant reduction in prices received for our production. The long-term effects are still to be realized.

Farmers have once again borne the burden of reduced exports, increased input costs, and the absence of a comprehensive Farm Bill. The necessity for marketing assistance and creating one of our comprehensive marketing plans has never been more important. Your National Farmers marketing programs are designed for you to provide risk management strategies to assure the continued success of your farm.

Our NForganics marketing representatives have recently observed increased interest in non-GMO grains from select buyers. The premiums for this type of production vary, but provide opportunities in some marketing regions. Contact a marketing representative for additional information.

NForganics has developed opportunities for producers to secure Acres Contracts for 2025 production. These types of contracts offer producers a guaranteed price for all bushels produced on a specified number of acres. The prices negotiated for producers utilizing these contracts have been extremely favorable. Markets for specialty organic grains are constantly being identified and have provided an opportunity for significant premiums for National Farmers producers.

The outlook for conventional grain prices varies. Recent USDA projections of additional corn acres planted has not been positive in support for 2025 production. The interest in increased utilization of biofuels was positive but has yet to be implemented. Producers are encouraged to monitor basis levels for desired delivery periods and make incremental sales when market spikes occur. Weather and government policy will be the primary concerns of investors moving forward.

The support for soybean prices was significantly reduced by China’s reaction to increased tariffs. China has turned to South America as its primary supplier of soybeans now. The United States export prices for corn and soybeans are among the lowest in the world. Interest in the purchase of U.S. commodities has cooled considerably.

Producers are encouraged to contact your elected representatives in support of a Farm Bill and government policies supportive of U.S. agriculture.