SIOUX FALLS, S.D. – President Donald Trump makes a visit to South Dakota this week as the first payments begin for commodity producers hurt by an ongoing trade war.
The Market Facilitation Program allows producers of soybeans, wheat, corn, sorghum, cotton, pork and dairy to receive money from a $12 billion federal trade compensation package.
Joseph Santos, an economics professor at South Dakota State University, says commodity producers are especially hurt by trade disputes because they come after years of already low prices for grain.
"It's a tough time to have this happen to them,” he states. “It's not a tough time for the aggregate economy, for the macro-economy, but it's a tough time for commodity producers, not that this would ever be good, but you don't want it right now."
Details about the president's visit to South Dakota have been sparse so far, but he will be stumping for the state's GOP governor candidate at a fundraiser.
It's not known if he will hold a public rally where he could address agricultural issues or the trade compensation package.
Last month the U.S. Department of Agriculture announced that soybean farmers will receive $3.6 billion through the federal program.
But some growers say it's a Band-Aid that won't begin to cover their losses.
Santos expects prices for commodities such as soybeans to fall dramatically with tariffs. He says free trade means transactions, more economic activity, innovation and competition.
And while the administration's long-term aggressive approach to even out the trade balance makes sense, right now it's just a tax causing less trade.
"You know, we're imposing these tariffs everywhere in very blunt ways, disrupting markets all over the world simultaneously, and that's a tough, multi-layer chess game to keep track of," he states.
Distribution of the aid package to producers begins as Congress debates the Farm Bill, set to expire on Sept. 30.
A conference committee held its first negotiations on Wednesday, acknowledging that the biggest sticking point between the competing House and Senate bills is over the Supplemental Nutrition Assistance Program, often called food stamps.
Trump has said he favors a bill that includes tougher work requirements for SNAP recipients.
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On Tuesday, 20 Colorado officials sent a letter to the state's congressional delegation protesting six cuts to public lands management in the new tax and spending bill signed into law by President Donald Trump.
John Clark, mayor of Ridgway, said the elimination of river and climate data programs, which are essential to managing the Colorado River Basin and forecasting drought, will put additional burdens on food producers.
"If our farmers and ranchers don't have accurate data about exactly what the situation is with the snow pack and what's happening with the climate, how can they be prepared for each growing season?" Clark asked.
Five active wildfires have burned more than 22,000 acres on Colorado's Western Slope. The letter urged state representatives to reject any additional cuts to the U.S. Forest Service's Community Wildfire Defense Grant Program or other mitigation efforts. Republicans have argued cutting the size of government is necessary to eliminate waste, fraud and expenditures they claim are unsustainable.
Officials are also calling out a provision in the new law they believe undermines local decision-making by forcing oil and gas leasing on public lands. In addition, the law creates new barriers for clean energy leases on public lands, a move Clark worries will lead to the loss of good-paying jobs.
"If we discourage clean energy on public lands, that's going to severely impact our alternative energy workforce," Clark pointed out. "If we can't do wind and solar on public lands, it disincentivizes clean energy all across the state."
Officials are also asking members of Congress to fully fund the National Park Service to ensure proper staffing and maintenance. Clark argued standing up for lands owned by all Americans is essential to preserving Colorado's iconic natural landscapes and rural economies.
"Our economy is hugely dependent on people coming in to visit us and eat at our restaurants and experience these beautiful outdoor environments," Clark emphasized.
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A Wisconsin nonprofit is working with farmers in Southeast Wisconsin to educate communities about the importance of agroforestry, with plans to establish its first urban site in Milwaukee.
The Michael Fields Agricultural Institute has planted more than 400 trees across three sites this year, in partnership with the Savannah Institute. The sites include a community garden and two farms.
Iris Lee, owner of Lee Hemp Farms in Burlington, said agroforestry collaboration is breathing life back into her nearly 50-year-old organic family farm.
"You plant and design things that go together," Lee explained. "That will help not only humans but the animals and nature and bugs."
Agroforestry integrates trees, shrubs and perennial plants into crop and livestock systems. Lee noted one of the project's goals is to raise awareness of the practices and their larger connection to food systems, climate change and communities. The sites will also be used for educational demonstrations.
Community members and project participants helped Lee plant a trail of more than 100 trees in April, from hazelnut and elderberry, to Juneberry and pawpaw trees. They have already grown two to three feet, and she anticipates the berry trees will yield results first. Lee added she even loves talking to her trees and emphasized the physical and mental health benefits of agroforestry.
"Growing something is therapeutic," Lee observed. "To be one with nature -- meaning you know where things come from that you put in your body -- anybody that is concerned about the food and their health, to grow something is to build upon a better human being."
Nolan Burkard, research technician for the nonprofit Michael Fields Agricultural Institute, said diversifying food systems in this way is a growing area of interest for small farmers. Through agroforestry, they can also improve soil health and local climate resilience.
Burkard emphasized it requires long-term investment to get there.
"It takes quite a while for trees to grow up and start fruiting or provide their benefit," Burkard acknowledged. "That's why this project is so important because it is such an investment to plant trees."
Burkard added the institute is accepting applications until July 26 for an urban site in Milwaukee. The selected site will receive $15,000 and planning support to aid in designing it.
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Despite the elimination of a handful of alternative energy tax incentives in the new federal budget, Iowa corn farmers will benefit from one that was extended.
Tax breaks and rebates encouraging investment in solar and wind power in Iowa were eliminated in the federal spending plan. However, the Trump administration extended an incentive enabling farmers in Iowa to produce more corn. The Hawkeye State is the nation's top corn producer, much of which is used to produce ethanol.
Chris Bliley, senior vice president of regulatory affairs for the biofuel trade organization Growth Energy, said grain-based fuels burn cleaner and are more environmentally friendly.
"The credit actually goes for production of lower carbon fuels that are used for transportation," Bliley explained. "It includes on-road fuels as well as sustainable aviation fuel. And so, the lower in carbon, the higher the credit."
The Trump administration has made efforts to extract more fossil fuels, which it said will move the U.S. toward energy independence.
Lawmakers in Iowa and neighboring Midwest states have introduced their own tax incentives for biodegradable jet fuel, which Bliley noted will create economic benefits for ag producers.
"To remain competitive, plants in Iowa and Nebraska and throughout the Midwest are investing in some of these key projects to lower their carbon intensity," Bliley observed.
The commercial airline industry is aiming for net-zero carbon emissions by 2050, according to the International Air Transport Association, which could continue to benefit Iowa farmers who provide corn for ethanol production.
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