OMAHA (DTN) -- A key farmer and co-leader for the Farmers and Ranchers for Trump Coalition said trade should be the biggest immediate priority for agriculture when President-elect Donald Trump takes over in January.
Kip Tom was Trump's ambassador to the United Nations Agencies for Food and Agriculture. An Indiana farmer, Tom's name has been mentioned in the past couple days with others as a possible nominee for secretary of Agriculture.
In an interview Thursday with DTN, Tom pointed to farm incomes falling roughly 40% more than the past two years as the critical issue for agriculture right now. Tom said the U.S. Trade Representative's Office and USDA's Foreign Agricultural Service (FAS) need to hit the ground running to help sell excess U.S. production.
"We've got to address that now. We can't wait any longer," Tom said. He added, "We need to make sure we've got a strong negotiator at USTR getting out and putting together these deals around the world."
TARIFFS, A MEANS TO AN END
Commodity groups and economists have raised concerns about some of Trump's campaign promises to raise tariffs 10% against all trading partners and raise tariffs as much as 60% on goods from China.
The American Soybean Association and National Corn Growers Association released a study last month stating another trade war could cost farmers $5 billion to $8 billion a year in lost value.
Tom said he recognized possible tariffs are top of mind for commodity groups, "as it should be," but he's not as concerned, even though Tom said he knows tariff battles dropped crop prices the last time around.
"So, Trump will always look at tariffs as a means to an end, and I think he loves to negotiate," Tom said.
CHINA PROBLEM
The trade war with China sparked $23 billion in trade-aid payments, but also led to the China Phase I deal that drove record exports to China and record farm income in 2021 and 2022.
The United States-Mexico-Canada Agreement (USMCA) also has helped make Mexico the largest buyer of U.S. corn.
"When Trump was in office his four years, he created nearly 50 trade deals around the world, a lot of them in southeast Asia," Tom said.
With China, the overall U.S. trade deficit was $279 billion in 2023, and that needs to change. "Somehow we've got to get the Chinese to negotiate where they buy more from the United States to balance that out a little bit right now," Tom said.
American trade leaders also need to pay more attention to the Brazil, Russia, India, China and South Africa (BRICS) alliance. The trading block is the world's largest by population and accounts for about 37% of the world's grain, Tom said. The bloc keeps making moves to reduce American influence globally.
"They are talking about their own grain exchange now," he said. "They are talking about trading in their own currencies, trying to offset the United States. That's what's going on behind the scenes. You're not hearing a lot about it, but it's affecting our trade as well."
If there is parity between the U.S. and Brazil on agricultural products, China now leans into buying from Brazil, Tom noted. Yet, the U.S. is importing $500 billion a year of Chinese goods.
"This is where negotiation comes in," Tom said, pointing to the trade deficit. "We've got some leverage in there where we need to start playing a little bit. And I think this is something President Trump is really good at, so I'm not as fearful about tariffs. There are going to be some times where it's going to feel a little uneasy, but I'm convinced we'll get what we want."
REGULATORY REFORM
Another priority for agriculture should be working on the regulatory environment. It's reached a point, Tom said, in which it is now quicker to get crop-protection products approved in Europe than the United States.
"We've got to have access to new products," he said, adding, "We've really slowed down. So, we've got to get EPA functioning to the point where we can get those products through in a reasonable manner and make sure they're going through the right scrutiny. We want to save products for farmers to use and to be used on our food products and our crops. At the end of the day, we need to get those folks enabled to get these products approved quicker and get them to the farm. If not, we'll fall behind the rest of the world."
AMERICAN MADE INPUTS
On top of new approvals, Tom has repeatedly called for input companies to manufacture their products in the United States, whether its crop-protection tools or health/feed supplements for livestock.
A lot of these products are now produced in China. As both a trading partner, but adversary, that puts a lot of critical products at risk, Tom said. If China were to cut off access to those products, it could cause major disruptions for farmers and livestock producers.
"My feeling is we need to work to bring some of these supply chains back to the United States whether it's in the crop-care manufacturing business or making some of those products for our livestock," Tom said. He added, "Let's do some work and make sure we have the regulatory environment that is supportive of manufacturing here in the United States, creating good-paying jobs here and supports capital investment here."
Tom added, "I would be proud to buy American products as long as they're competitive. I don't know if that's 5% more or 10% more, but the reality is I want to buy a product that is make in the United States or from one of our friends or allies around the world. I think we need to work with them, as well. I think it's time we put America first."
WHERE DOES RFK JR FIT IN?
Robert F. Kennedy Jr. became a popular surrogate for Trump in the last few months of the race. Kennedy has strong views on food, health and agriculture. He has suggested banning certain crop chemicals.
Tom said he agrees with some of Kennedy's focus on health. "There's nothing wrong with making America healthy again. I have to agree with that. I think we all want to have and strive to be healthier."
Tom pointed to an increase in type 2 diabetes in children and the problem of obesity nationally. "I don't think the modern innovations we use today are creating that problem. I think a lot of it is lifestyle."
Tom agreed there should probably be a shift away from ultra-processed foods.
"But let's face it, society looks for convenience today. We don't want to spend any time preparing a meal. Both husband and wife sometimes work and they just want to make it convenient. So, I'm hopeful that, as we have this discussion, as we move forward, that we understand what does making America healthy again really mean and how do we get there?"
Tom noted going organic isn't practical. He pointed to the 2022 collapse in Sri Lanka when the government pushed 100% organic food production. The European Union's "Farm to Fork" initiative -- which lowers fertilizer and pesticide use -- has led to farmer protests in multiple EU countries as well. Such efforts have driven up food inflation and reduced access to food.
"I think the president understands that clearly and I feel he will support the agriculture and ranchers across America," Tom said.
AG SECRETARY PROSPECTS
Tom's name keeps coming up in the early short list of possible candidates to run USDA. Tom said he hasn't had any formal discussion about it but realizes there's always speculation about a new president's team.
He's going to continue leading the Farmers and Ranchers for Trump Coalition and ensure their voices are heard in Washington. "We'll continue our work here after the election now. If the president calls and asks me to do something, I'd be glad to serve at his pleasure."
Others mentioned for USDA Secretary include:
-- Mike Conaway, a Republican from Texas and former Chairman of the House Agriculture Committee when the 2018 farm bill was passed. Conaway is now a partner in a federal lobbying firm.
-- Kennedy's name also has appeared on those short lists for USDA. Kennedy also has mentioned the Food and Drug Administration, as well as Health and Human Service.
-- Rep. Thomas Massie, R-Ky. Massie, among the most conservative members of Congress, has put it out there that he wants to serve in the Trump administration. Despite not serving on the House Agriculture Committee, Massie posted on that he would be interested. Virginia farmer and author Joel Salatin posed on a blog he is going to work as an agricultural advisor for Trump and Massie "has agreed to go in as Secretary of Agriculture." Massie responded on X that he has not had any offers from Trump's team.
-- Ted McKinney, the CEO of the National Association of State Directors of Agriculture (NASDA). McKinney was undersecretary of Trade and Foreign Agricultural Affairs in Trump's first term. He's also from Indiana.
-- Sid Miller, the Texas Agriculture Commissioner who is a strong Trump supporter.
TRUMP'S RURAL SUPPORT CRITICAL
A lot has been made about how Vice President Kamala Harris lost the presidential race, but Trump gained ground in cities and rural areas. Still, Trump's support in rural America remains the cornerstone of Trump's base. Tom said Trump will remember that when choosing members of his team and policies.
"He knows that 75% of rural America -- agriculture and ranchers -- supported him in this election," Tom said. "The president understands the importance of rural America, our access to innovations to make sure we're productive, to make sure that we have the ability to create economic incentives to come back and reinvest in our farms and new capital, and make sure we produce plenty."
Chris Clayton can be reached at Chris.Clayton@dtn.com
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