GREEN BAY — There’s a new president and a new Congress in Washington and a new set of concerns for farmers.
“There’s going to be a lot of noise and at times our unscripted president will say something, and our hair will be on fire, but in agriculture, we always need to be ready to make our case,” said Chuck Conner, president and CEO of the National Council of Farmers Cooperators, during a keynote discussion at Dairy Strong on what to look for in federal policies in 2025.
Immigration and tariffs are the two top concerns facing the ag industry in the coming year, he continued. Whether it is higher tariffs or a crackdown on illegal immigration, the ag industry has “a right to be nervous.”
Farmers should be concerned about the probability of new tariffs, which could result in corresponding retaliatory tariffs and a decline in exports, said Michael Torrey, president of the Torrey Advisory Group, a Washington-based bipartisan consulting group focused on farm and ag issues.
“If we raise tariffs against Mexico, for example, you know they will raise them right back, making our products more expensive there. That will have an impact on sales,” he said.
Conner predicted in a year or so that farmers will receive a payment to offset market losses due to tariffs.
“Trump knows he can’t lose rural votes since in two years, the whole House is up for a vote,” he said. “They need farmer support.”
Torrey said extending and expanding the Tax Cuts and Jobs Act of 2017, which expires at the end of 2025, will be the main focus for Congress this year. If the rule is not extended, more than half of Americans will pay higher taxes in 2026.
“They need to get that handled and will likely need help from the Democrats to get it passed because the Republicans have such a small margin,” Torrey said. “If the Republicans don’t get anything done, they know they’ll lose big in two years since they control everything and can’t place blame elsewhere.”
A provision in the tax act provides tax benefits for pass-through entities, including agricultural cooperatives. “We (agriculture) have a lot at stake if the tax rule isn’t extended,” Conner said. “I can’t tell you how the extension will happen, but it needs to happen.”
One piece of legislation important to farmers — a new farm bill — is not on the top of Congress’ to do list, but it could still get done, Conner said.
“A key part in making a new Farm Bill work will likely be some cuts to the SNAP program, but significant cuts will sink the bill since you don’t want to be taking food away from those who need it,” he said. “But I think the Farm Bill might get done, especially if it is included in a giant (budget) reconciliation bill.”
The Make America Healthy Again initiative could also affect farmers if it raises doubt about the current regulatory structure for ag products, Conner said.
“Our goal is to provide the safest, most plentiful food in the world and don’t need someone (presumptive HHS Secretary-nominee Robert F. Kennedy, Jr.) taking our system apart,” he said. “We don’t want people to lose confidence in the safety of our food.”
Torrey said the agriculture industry needs to focus on science when discussing the current regulatory system. “We have to keep telling our story (to Congress) so they don’t legislate on sound bites, but rather sound science,” he said.
This year’s Dairy Strong conference brought over 400 attendees, representing over 150,000 cows, and industry professionals to Green Bay for the annual conference.
