Deportations Could Risk Food Supply

AFBF President Zippy Duvall Urges Congress to Act on Ag Labor, Farm Bill and Tax Reform

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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Zippy Duvall, president of the American Farm Bureau Federation, talks about the farm bill during his speech in the opening general session of the group's annual meeting in San Antonio. Duvall highlighted the importance of congressional action on agricultural labor, the farm bill and tax cuts this year. (DTN photo by Chris Clayton)

SAN ANTONIO (DTN) -- As the Trump administration ramps up pressure on illegal immigrants and tariffs with trading partners, the American Farm Bureau Federation wants Congress to deal with agricultural labor, the farm bill and taxes in 2025.

Zippy Duvall, president of AFBF, said Congress will have to respond to the various issues affecting farmers. Duvall spoke at the opening session of AFBF's annual meeting Sunday in San Antonio.

REPERCUSSIONS ON LABOR, DEPORTATIONS

On labor, Duvall warned that aggressive actions on mass deportations of farm workers would have negative political repercussions. The American public would not easily accept disruptions to the food supply or costly spikes in prices, he said.

"I think that especially after COVID, our general public is more sensitive to the food availability, the food system as a whole, from the farm to the fork," Duvall told reporters during a press conference Sunday, adding that would put pressure on Congress to act.

"I don't think our people in this country are going to stand for any interruptions in that now, and I think that will push us to an area where we may have the opportunity to speak to this issue more than we ever have before. Of course, none of us want to see shelves go empty like we have experienced during the pandemic, but if it got serious enough, it could very well go in that direction," he said.

"That's going to show the absolute need for having farm labor reform, whether it be H2A or new H2A or whole new program. So, we invite that conversation," he said. "There are solutions out there to do that, and we're looking forward to be able to find a solution."

Duvall pointed out agriculture as an industry has been trying for nearly three decades to press for reforms of the H2A agricultural migrant worker program. Bringing in those workers is costly and farmers such as dairy producers are not allowed to use the H2A program for year-round workers. "Our plea is to allow us to have a seat at the table," Duvall said.

Duvall added he has already begun to hear from farmers whose workers have stopped showing up for work.

"Hopefully the movements we're seeing are going to encourage lawmakers to say we understand the need for formal labor. We got to provide a workable program for employees and employers so that we can maintain this food security that we enjoy in our country," Duvall said.

Speaking to AFBF members, Duvall said farmers need to share their stories about agricultural labor with members of Congress. "It matters for our lawmakers to hear directly from you," he said.

TRADE AND USMCA

Trump has talked about putting 25% tariffs on Canada and Mexico starting as early as Feb. 1. During a forum on the United States-Mexico-Canada Agreement (USMCA) a former chief trade negotiator for Canada, Steve Verheul, talked about those risks. Canada would go into a recession almost immediately, he said.

Canada would impose "dollar for dollar" tariffs and agriculture would become a "prime target," Verheul said.

"We don't want to go down that road," he said. "It's going to hurt U.S. farmers, too, because we're going be forced to do somethings and we don't want to do it."

If the 25% tariffs become a reality, U.S. farmers would struggle to find potash, or they would have to turn to Russia. Canada provides 87% of U.S. potash.

"I think we should have better terms than Russia should have," Verheul said.

While Trump has talked about the U.S. trade imbalance, Verheul said the U.S. trade deficit is driven mainly by imports of oil and natural gas, and electricity transmitted across the border. Those energy exports, however, do provide Canada some leverage if Trump imposes tariffs, Verheul said.

Speaking to reporters, Duvall said he thinks the USMCA needs to be strengthened for U.S. agriculture. "There is room for improvement in that agreement."

Duvall said he expects that the Trump administration would respond quickly if retaliatory tariffs affect U.S. agricultural markets. He also pointed to comments from Trump's nominee for Agriculture secretary, Brooke Rollins, who said the administration is already looking at what they did in 2018-19.

"So that gives me the indication that tells me that they've had a conversation about that at some level, and that does bring us comfort," he said. "Of course, farmers want open markets. We want trade agreements. We want to be competitive across the globe in an open market."

During the first trade war with China, USDA provided $23 billion in payments to producers over a two-year stretch.

Overall, the U.S. agricultural trade deficit set to hit $45 billion for agriculture this year. That isn't acceptable, Duvall said. Farmers want to see some trade deals that are going to expand market access.

"We are urging this new administration to prioritize new trade agreements," he said.

FARM BILL

Sen. John Cornyn, R-Texas, who opened the convention, said he believes that Congress will finally complete a new farm bill under Republican leadership. Cornyn also talked about the $30 billion in aid Congress provided for natural disasters and economic assistance. He noted natural disasters are becoming a bigger challenge for farmers.

"Disasters that affect the entire nation seem to be coming at us more often and more severely," Cornyn said.

The aid package is appreciated, Duvall said, but Congress needs to pass a farm bill with an improved safety net for producers.

TAX CUTS NEEDED

Tax cuts are also top-of-mind, Duvall said. He pointed out the risks of a "tax cliff" for farmers and other businesses if Congress doesn't extend the 2017 tax cuts before the end of the year. He noted the value of deductions such as bonus depreciation on major equipment purchases.

"Our leaders have told us they are going to take care of these problems and we are going to hold them to that," he said.

See, "USDA Nominee Rollins Promises Ag Tariff Aid, but Says Labor Reforms Needed for Deportation Policies" https://www.dtnpf.com/…

Also see, "US Tariffs Coming, Retaliation on Tap From Canada," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com

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Chris Clayton