Aug. 1 is the deadline for the end of a tariff pause. Uncertainty is clouding the agricultural markets, according to a UW-Madison ag economist.
Assistant Professor Jeffrey Hadachek joins us in-studio from the Department of Agricultural and Applied Economics. He explains that what was originally set under the Trump administration as a 90-day pause on tariffs for select countries was later extended. This time, officials say no further extensions are expected.
While some industries may qualify for exceptions, Hadachek says those details are slow to materialize. For agriculture, the stakes are high when countries announce retaliatory tariffs, notably with trading partners such as Canada, Mexico, and China.
“What they do in response, because those are our three biggest sort of trading partners for our agricultural products… matters a lot for our agricultural products,” he says.
Despite ongoing uncertainty around trade, farmer sentiment is overall optimistic, Hadachek notes. He cites a Purdue University report showing many producers remain optimistic that ongoing trade negotiations will eventually lead to more favorable outcomes. In addition, a recent federal funding boost aims to expand trade missions.
“Within the ‘One Big Beautiful Bill’, there was additional support for trade mission-type work to develop new trade avenues throughout the world. Oftentimes, this funding is used by states individually to develop partnerships with different countries. I think that was close to a doubling of what was available through those programs before,” he says. “So, while we’re in this sort of uncertain world with major trade partners, I think there is some additional movement and room for market development opportunities because of this additional funding.”
Earlier this year, a major source of economic uncertainty was the lack of a new Farm Bill. Producers were operating under 2018 laws. The ‘One Big Beautiful Bill’ included about 90 percent of what would be included in a Farm Bill, including the shoring up of key farm programs like crop insurance. Hadachek says farmers will also be allowed to benefit from whichever program — ARC or PLC — offers the better return for the 2025 crop year.
