Potential tariffs and a shakeup in federal government concerns many farmers and ranchers. The national debate was brought to South Dakota at the recent annual Farmer’s Union conference. Speakers addressed the new administration and a growing need for produce.
Rob Larew is the president of the National Farmers Union. He said president-elect Donald Trump’s promise to levy tariffs on trade partners is concerning. He said an increase in tariffs for farmers means less annual income.
Larew said he’s meeting with incoming cabinet secretaries to discuss priorities.
“There are going to be lots of places where we have some opportunities, and we need to grab those opportunities wherever they are. And then when there are those issues whether its cuts, or the lack of a farm bill, yet again, or anything else we’re going to be there every step to be fighting back on those things. So, a lot of uncertainty but certainly filled, I think, with a lot of hope for some opportunity for progress, and that is kind of the Farmer’s Union way,” said Larew.
Larew said the future is not completely dim. He said he has faith in new antitrust laws. The Farmer’s Union has been engaged in a five-year legal battle over beef industry consolidation.
“This is the lawsuit for those who might not be aware, challenging the four largest packers. We know who they are, alleging collusion. I understand that’s a legal term and so forth but can’t we just call what they do on a regular basis colluding, and price fixing, and generally using their monopoly power against farmers and ranchers, but also against the consumers out there,” said Larew.
He said the lawsuit is now in its discovery phase, collecting evidence for the trail.
Matthew Roberts is an independent economist. He said when it comes to global trends, he expects to see a change in what is grown or raised and demand for certain products to increase.
He said proof of the increase in demand can be seen in China.
Roberts said in 1990 China consumed 27 million metric tons of meat a year – that figure now sits around 90 million metric tons of meat a year. He said there needs to be more crop land in production just to offset the growth in China.
“So, 60 million more acres needed. Just to meet Chinese soybean import demands. Now we hear a lot, this is why I like to work in acres because it allows us to compare and talk about crop to crop. Its hard to talk about bushels and compare corn to beans. Acres allow us to do that,” said Roberts.
Roberts said there are fewer farmers to meet the need. He said farmers will have to pay closer attention to profits, losses, and yields and aim to keep their workers happy.
He said many customers are shifting their desires for “farm-to-table” food and says they are willing to pay a premium price to know where their food is coming from.
He said the next hurdle for farmers is a dwindling workforce that demand the farmer to be versed in soft skills.
“How to be a manager of people is going to determine whether or not you can operate a farm or a business that has employees. Its no longer enough to say, ‘I pay enough,’ because we are in a world with a diminishing labor supply. You need to learn how to be a manager of people," said Roberts. "Hard skills, tax, legal, agronomy, you can contract those. Managing people, that's your job. There is no way around it.”
Roberts said rural areas are impacted two-fold with labor shortages. He said the future of business competition is how much is invested in employees or labor force.
He said successful companies today have learned that keeping their employees' happy leads to less turn-over and overall higher profit margins for the company.
