Ag trade deficit top priority for U.S. agriculture secretary

Glacier FarmMedia – Brooke Rollins isn’t a rock star; she’s the secretary of agriculture in the United States.

However, at 5 p.m.March 2, Rollins took the stage at the Commodity Classic in Denver, and as she walked toward the podium, about 2,500 farmers inside the Colorado Convention Centre leapt out of their seats and gave Rollins a standing ovation.

In her speech, Rollins repeated what she told 40 members of the agricultural media in a separate event for the press—America’s trade deficit in agriculture is a disaster.

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“When you have a US$49 billion trade deficit (in agricultural commodities), that is devastating to our American farmer and ranchers,” said Rollins, who is from Texas and was sworn in as agriculture secretary Feb. 13.

“It’s $49 billion. I think on Friday (Feb. 28) it was $45 billion, but some new numbers have (since) come out.”

When that trade deficit is combined with soaring input costs for and lower prices for corn, wheat and soybeans, the economic situation is desperate for many producers, Rollins said.

“Especially for row crop producers, it’s perhaps it’s the worst it’s been in 100 years,” she said, adding that farm cash receipts have declined significantly over the last few years.

That drop in farm income is connected to sky-high commodity prices and strong farm cash receipts during the global pandemic.

Nonetheless, the new ag secretary is determined to fix the agricultural trade deficit by opening new markets and increasing exports of U.S. ag commodities.

“I am planning to very aggressively, with President Trump’s permission, go out into the world and let’s expand our markets.”

Rollins’ message resonated with Cole Mertens, a grain farmer from New Raymer, Colorado.

His part of the state — northeastern Colorado — has suffered through three droughts in the last five years. He’s sick of support programs and wants to sell his grain to global customers.

“We’re tired of these ad-hoc disaster payments…. We want to have better access to markets,” Mertens said.

“I serve on the Colorado association of wheat growers board. We were in D.C. last year. That was the big thing when we were on Capitol Hill, talking to representatives (about trade).”

Expanding exports of corn, soy and wheat is one thing, but many farmers in the U.S. are worried about tariffs on imports and the possibility of retaliatory tariffs from countries such as Canada, Mexico and China.

President Donald Trump has threatened to impose sweeping tariffs on all goods from Canada, Mexico, Europe and other nations.

During the press availability, a reporter asked Rollins about what she’s hearing from American farmers. Are they concerned about tariffs and trade wars?

Rollins, who has only been ag secretary for two weeks, said she has spoken directly with about 200 producers. Many of them are worried about tariffs and the consequences for America’s ag industry, she said.

“That is my role,” Rollins said. “To ensure that those concerns are heard, effectively.”

The American Soy Association (ASA) is one group that is openly hostile to tariffs.

“From what our experience has been with ag trade, they are not helpful,” Stan Rohm, a farmer from Illinois and ASA director, said following Rollins’ speech.

“We do not support the tariffs…. Every time we go to (Capitol) Hill, it’s a position that we remind legislators … and the administration (about).”