'The bleeding hasn't stopped yet' for U.S. dairy farmers

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'The bleeding hasn't stopped yet' for U.S. dairy farmers via YahooFinance

As U.S.-China trade tensions continue and the United States-Mexico-Canada Agreement awaits ratification, American dairy farmers are hurting.

“Since the tariffs were first imposed, U.S. dairy product exports have plummeted 43%,” a recent note from Wells Fargo Securities Economics Group stated. “With exports down so sharply, many farms have run into trouble.” Wayne Gajewski, a Wisconsin dairy farmer, said that “times have progressively gotten worse” over the last three to four years. To him, though, reaching a resolution with China on trade is just as important as getting the USMCA ratified.

And one of the key components of the USMCA, and why it is so important to U.S. farmers, is that it gives them more access to the Canadian dairy market. “We’ve seen seven months in a row of the surpluses that have been shrinking,” Edelburg said. “So that’s been helping us a lot, but it’s amazing how these trade wars, you can affect one crop and it affects 100 farmers and it doesn’t matter if you’re selling beans or dairy or corn. It’s a trickle down.”

 

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