Farmers facing high costs amid international trade uncertainty
BATON ROUGE - Farmers continue feeling the impact of tariffs as their profits are cut and the cost to maintain equipment rises.
Monday, Mike Strain, the Louisiana Commissioner of Agriculture and Forestry, spoke about what factors are making it difficult for farmers to make money.
Despite these challenges, farmers say this year produced great crops.
"Sugarcane loves heat, rain and sunshine, and all summer we had all three of those in abundance," Patrick Frischhertz, with St. Louis Planting, said.
The soybean crop was optimal, but with trade tensions between the United States and China, farmers in Louisiana aren't selling at the rates of previous years. Frischhertz says the price of soy beans dropped about 15%.
However, on top of trade costs, maintenance costs are also adding up. Frischhertz says farmers are paying more for everything, including tractors, steel and parts for sugar mills.
Strain says the value of crops like soybeans, corn and wheat, despite being healthy, fell below the cost of production.
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"All of those factors together have been a very, very difficult year in agriculture in Louisiana and across the United States," Strain said.
Farmers say they expect the impact of the tariffs to last into next year, and they're expecting much higher repair costs.
"We're trying our best to plan for the future and budget ahead," Frischhertz said.