NOBLESVILLE, IN — As trade negotiations continue to waiver, Indiana farmers are feeling the impact of economic uncertainty, particularly with regard to exporting agricultural goods.
Indiana, which ranked as the seventh-largest agricultural exporter in the U.S. in 2024, faces challenges from the upcoming tariff proposals.
Todd Davis, chief economist for the Indiana Farm Bureau, highlighted the pressing need for clarity in trade policy to improve market conditions for farmers.
"Just like everybody, there's always some economic uncertainty," Davis stated.
"Removing some of this policy and trade uncertainty would definitely help with getting some better prices."
Farmers, including Jon Sparks, are calling for swift agreements to resolve trade disruptions.
“We would love to see some kind of agreements come on some of these trade disruptions to get to where we're moving more ag-products out of Indiana,” Sparks remarked.
Andrew Butters from Indiana University's Kelley School of Business says the implications of trade uncertainty are felt by many.
“Farmers in particular, but just businesses generally, they don't make decisions that they believe they can reverse in two week's time, a month's time, even 90 days," he explained. "Their planning horizons and their decisions are on a much longer-term basis."
Despite the challenges, many farmers acknowledge that uncertainty is part of their profession.
Jim Flanders, another Indiana farmer, emphasized resilience in the face of challenges.
“There are inherent risks that God gives us, and we just manage them. This tariff situation is just another small part of those risks," he explained.
“We’re able to sell these corn and soybeans to other countries to help raise their diets, improve their diets, raise their standard of living. We just would like to have market access, some market certainty, to help with just planning our business and do what we’re about to do," Davis explained.
Butters warned that tariffs are essentially a tax passed down to consumers.
"It's a tax, and typically, who ends up paying the burden of that tax tends to very often be consumers," he said, suggesting that everyday purchases, from washing machines to groceries, could become more expensive as a result.
"Honestly, I'm more concerned about our crop inputs coming in from foreign countries at a reasonable price so that we don't have huge increases in costs for the 2026 season," Flanders shared.
As negotiations continue, Butters hopes for a resolution that alleviates the current burden on traders.
“My hope is that again, the deal that ultimately gets made is one in which we can see tariff rates that are even lower than the ones that are currently kind of quote-unquote on the books right now,” he stated.
