By Blake Jackson
Recent tariff actions from the administration are raising concerns among farmers, particularly those in the dairy and beef industries, as they navigate uncertain trade markets.
Economists note that consumers are now facing the highest effective tariff rate since 1933, averaging 18.6 percent, according to Yale’s Budget Lab. The administration has defended the move, saying the changes are intended to restore economic sovereignty, address trade imbalances, and protect American workers.
For dairy producers, however, the impact could be immediate. Many rely heavily on international markets to move surplus milk products. With Wisconsin alone exporting more than $3 billion in agricultural goods in 2024, trade restrictions may leave excess supply at home, putting downward pressure on farmgate prices.
“When you have that scenario, plus these new tariffs coming on, countries not being able to afford our products … it stays here, which just then adds to that problem of lowering the price that farmers receive for their products,” explained Wisconsin Farmers Union President Darin Von Ruden.
Farm leaders are pushing for measures such as growth management programs to stabilize markets, but the rapid pace of policy changes complicates planning.
Perishable goods like milk must be sold within a limited timeframe, adding pressure to find outlets quickly. Equipment costs are another challenge, with tariffs making imported machinery, such as robotic milking systems, more expensive.
Beef producers are experiencing a slightly different situation. Prices for beef are at record highs, with ground beef averaging $6.25 per pound in July. However, higher operating costs from inflation are narrowing margins.
“It’s nice that we’re making more money, but with those higher costs, we’re not making as much as maybe we would have five years ago,” said Wisconsin Beef Council President Amy Radunz.
While beef farmers have so far avoided the worst effects of tariffs, they remain cautious. Markets in Southeast Asia remain strong, but exports to China have stalled amid trade disputes, leaving producers wary of future disruptions.
Photo Credit: gettyimages-baranozdemir
Categories: Wisconsin, Livestock, Beef Cattle, Dairy Cattle