The state’s agriculture industries are paying close attention to prices on products they use.

by Helen Argraves, for the Community News Service

Like people in many sectors of the economy these days, agricultural producers in Vermont are trying to navigate the upheaval caused by the Trump administration’s tariffs. 

Uncertainty from the tariffs could add stress and financial burden for farmers in the coming year. They, along with state officials, are watching tariffs on products like feed, fertilizer and equipment closely to decide how to proceed. Many of these products come from Canada, the focus of some of the administration’s tariffs. 

Agricultural producers depend on predictability when deciding what and when to buy, said Secretary of Agriculture Anson Tebbetts. 

“Farmers are having to do research above and beyond what they usually do,” Tebbetts said, including working closely with suppliers to track and negotiate prices. 

Vermont’s dairy industry exports a large amount of its whey powder to China, Tebbetts said, a point of concern for agriculture in the state. “If China turns to another country to support dairy, it could impact the price here as well,” he said. 

In addition, feed and fertilizer used in the dairy industry is largely sourced from Canada. If prices for those supplies go up, Tebbetts said many dairy producers wouldn’t be in a place to raise their prices in step.

“Farmers are going to have to absorb that change somehow,” he said. “They’re either going to have to cut corners or take that as a loss.”

As of now, goods sourced from within Canada, the U.S. or Mexico are exempt from the recent reciprocal tariffs under the trade agreement between the three countries. But some farm equipment or machinery parts may come from countries outside the agreement, meaning farmers looking to upgrade or replace their tools in the next year may face higher prices. 

The maple industry is also paying close attention, said Tebbetts. Quebec is the global leader in maple syrup production, while Vermont leads domestically. Changes in trade policy could cause an increase in the price for syrup containers imported from Canada.  

What is Vermont doing about tariffs?

Tebbetts is a member of the Interagency Tariff Task Force created by Gov. Phil Scott in February to assess the impacts of tariffs in Vermont. Lindsay Kurrle, secretary of the Vermont Agency of Commerce and Community Development, leads the taskforce. It includes members from her and Tebbetts’ agencies and the state Labor and Public Service departments. 

The group seems intended to provide a cool-headed response to volatile federal economic policy. In a Feb. 4 press release addressing the task force’s creation, Scott acknowledged that, while some of those policies may be harmful, some could help Vermonters. 

“We need actual data and credible analysis to demonstrate disadvantages we are concerned about,” he is quoted saying. 

The task force has been meeting once a week since it formed, said Tebbetts, and has created a tariff resource page for businesses on the commerce agency’s website. The page includes a list of all tariffs and reciprocal tariffs in place as of April 2, an updated timeline and analysis of the Trump administration’s international economic policies and the implications for different sectors from the business-friendly Tax Foundation and a data table from law firm Reed Smith termed the “Trump 2.0 tariff tracker.” 

The group is focusing primarily on tariffs on goods from Canada, said task force member Tucker Diego, the assistant director of the agriculture agency’s food safety and consumer protection division. 

Canada is Vermont’s largest trade partner in both imports and exports, and dairy products accounted for $46 million in exports to Canada in 2023. Sawmill and wood products accounted for $44 million of imports from Canada and other agricultural products for $39 million in 2023. 

Christine Hinkel, director of communications at the commerce agency, said the task force has heard from experts in “a variety of fields including agriculture, energy, construction, forestry and international trade.” 

Tariffs may not be all bad

Glenn Card, a Massachusetts resident who alongside his brother runs a multi-generational beekeeping business of 35,000 colonies across the country, including Vermont, may be a perfect example of how tariffs could benefit some businesses in the state. 

Global pricing has made it hard for domestic honey producers to compete, and Card has been facing 40% lower wholesale prices for the last two years, he said. “If anything, things stand to improve,” he added. 

Imported honey accounted for 74% of the honey supply within the U.S. in 2021, and imports have exceeded domestic production of honey since 2005, according to the U.S. Department of Agriculture. 

According to Card, the beekeeping industry is seeing rising fuel, labor and insurance costs. Without a matching increase in the amount those businesses are paid for their honey, they have had to cut costs and employees, a detriment for the industry as a whole, he said. 

Tariffs may not necessarily be a complete solution, he said, but “anything that can help raise prices paid to U.S. beekeepers would be a great thing.”

Via Community News Service, a University of Vermont journalism internship, on assignment for Vermont Business Magazine