The Biden administration has been accused of leaving a gaping $49 billion deficit in the export market, leading to a 30% surge in the costs of agricultural inputs.
This claim was made by U.S. Secretary of Agriculture Brooke Rollins during her appearance on Fox Business's "Kudlow" on Wednesday.
According to the Conservative Daily News, Rollins pointed out that the current deficit in farm products starkly contrasts with the balanced trade figures witnessed four years ago under President Donald Trump's administration.
She attributed the current inflation in farm costs to the Biden administration's failed policies. "When you bring the cost of inputs down, it went up 30% under Joe Biden. Listen, the export markets, we lost the entire market of exporting. We have a $49 billion deficit for our farm products and our farm producers," Rollins stated.
The Secretary of Agriculture then drew a comparison to the deficit under the first term of President Trump. "When we left Trump one, Larry, four years ago, it was a 0% deficit. So all of these things matter. It will take a little bit of time. You cant do anything overnight. But I think the presidents vision he laid out last night, those of us who are on the team here again, and for the first time, realized what were doing, whats at stake, were fighting every single day," Rollins told Larry Kudlow.
Rollins also addressed the unrealistic expectations placed on the current administration to reverse economic trends within its first 30 days. "You cant turn an entire economy around in 30 days. You cant bring the cost of goods down in 30 days. And, you know, it isnt just that what we inherited, but you look at the cost of inputs," Rollins said when Kudlow pointed out that people on the left are blaming Trump for the current status of the economy.
By 2025, U.S. farm costs are expected to face various challenges and trends. Farmers are grappling with high input costs amidst fluctuating commodity prices. To manage expenses, many are focusing on reducing equipment purchases and fertilizer usage, given tighter margins and the need for cost efficiency.
Fertilizer prices, after peaking in previous years, are now expected to stabilize unless global supply issues or geopolitical tensions arise. Costs for chemicals used in agriculture are also predicted to remain stable with energy expenses expected to see some fluctuations, particularly with an increase in natural gas prices, while diesel and gasoline might see slight decreases.
In an effort to address the shifting economic landscape, Republican Virginia Rep. John McGuire introduced his inaugural bill, the Agriculture and Forestry Hauling Efficiency Act. This bill proposes to ease transportation expenses for the states agricultural and logging sectors by permitting heavier loads on interstate highways.
The bill seeks to raise the weight limit for trucks transporting unprocessed agricultural and forestry products on Virginias interstate roads to 90,000 pounds, thus matching the state roads limits and aiming to enhance efficiency and safety. This move could be a significant step towards mitigating the economic challenges faced by the agricultural sector.
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