Michigan Agricultural Exports Decline Amid Tariff Crisis

News Summary

Michigan’s agricultural exports have significantly decreased over the past six months due to ongoing tariffs, impacting both the agriculture and auto industries. Notably, soybean meal exports fell by 46% while wheat exports dropped nearly 90%. The state faces over $277 million in lost agricultural exports, with calls for lawmakers to finalize the budget to ensure stability. Governor Whitmer emphasizes the need for a compromise to protect this vital sector, which contributes an estimated $4.4 billion to the state’s economy. Future prospects remain threatened by trade restrictions and budget uncertainties.

Lansing, Michigan – A new report has revealed that Michigan’s agricultural exports have significantly decreased over the past six months due to ongoing tariffs, prompting calls for lawmakers to finalize the state budget to ensure stability in the agriculture sector. The economic impact of this decline is being felt particularly hard in both the agriculture and auto industries, which are the most affected by the current economic climate.

According to Tim Boring, the Director of the Michigan Department of Agriculture and Rural Development (MDARD), the tariffs are putting severe strain on Michigan’s agricultural community. In specific terms, soybean meal exports have fallen by 46% compared to the previous year, wheat exports have experienced a nearly 90% drop, fresh cherry exports are down 62%, and fresh apple exports have decreased by 58%.

The report also notes that retaliatory tariffs introduced during the first Trump administration have resulted in a loss exceeding $277 million in agricultural exports for Michigan, leaving many farmers facing a critical junction due to persistent trade challenges. Additionally, proposed cuts to the Supplemental Nutrition Assistance Program (SNAP) within the Big Beautiful Bill may further impact Michigan farms by reducing annual support by $120 million.

Governor Gretchen Whitmer has stressed the importance of reaching a compromise on the state budget to avert a potential government shutdown, advocating for decisions that would protect the vital agricultural sector. Currently, the House proposal includes a 34% cut to MDARD funding, while the Senate proposal suggests a 2% increase and aims to provide potential tariff relief for farmers.

Despite the current decline in exports, Michigan’s agricultural production showed promise in 2024 prior to the imposition of tariffs. In the previous year, Michigan exported nearly $3 billion in agricultural products, marking an increase of $282 million from 2023. Canada remained the largest purchaser of Michigan’s agricultural produce, accounting for over $1.2 billion in purchases. Other notable international markets include Mexico, South Korea, Japan, and China, which collectively purchased between $130 million and $450 million annually.

Michigan’s agricultural exports contribute an estimated total economic impact of $4.4 billion statewide, underscoring the sector’s significance to the state’s economy. Notably, the Upper Peninsula serves as a key region for seed potato production, contributing at least half of Michigan’s seed potatoes. In fact, Michigan ranks as the leading state in the U.S. for potato chip production.

This included increase in agricultural exports can be partly attributed to the strong performance of wood product exports from Upper Michigan. The potential of Michigan’s agricultural market remains evident, but the viability of this potential is increasingly threatened by trade restrictions and budget uncertainties. As lawmakers continue to navigate these challenges, the future of Michigan’s agricultural sector hangs in the balance, highlighting the need for coordinated efforts to restore market access and financial support.

Deeper Dive: News & Info About This Topic

• Brownfield Ag News
• Lansing State Journal
• Detroit News
• Crain’s Grand Rapids
• Wikipedia: Agriculture in Michigan