Michigan farmers facing ‘uncertain future’ amid funding freezes, tariff tensions

• Caught in the crosshairs of trade tensions, funding cuts, regulations and policy unknowns, Michigan farmers are feeling the pinch
• Farmers fear tariff escalations could impact costs of fertilizer and agricultural equipment, international market share
• Federal funding for agricultural programs, grants also in limbo amid Trump administration’s spending cuts

Fourth-generation farm owner Jim May doesn’t need a casino. In his chosen profession, he says, “I gamble every day.” 

As planting season approaches, the Sparta farmer is dealing with the usual concerns of weather, crop health, soil quality and profit margins. But life is even less predictable this year as prices for US crops stagnate and the cost of growing goes up. 

New tariffs on potash, a mineral-rich fertilizer largely imported from Canada, meant May could only buy enough to cover the portion of his land where he plants soybeans. He’s not replacing any equipment this year. His two sons, who now run the family’s apple orchards, are still wondering whether they’ll have enough workers to harvest their crop.  

“I have to cut things out, because, on the other end, it's not going to come in — we're not going to get it,” May told Bridge Michigan. “It really bothers me, because it's an uncertain future. We have no idea where we're going.” 

May and his family aren’t alone. 

In a state where agriculture-related exports hit a record high $2.9 billion in 2024, escalating tensions between the US and top trading partners such as Canada, Mexico and China have farmers and agricultural industry groups fearful of a spike in production costs and retaliatory tariffs that could dry up existing markets.

Other uncertainties include the future of federal US Department of Agriculture grants, some of which have already evaporated amid widespread cuts to government programs; access to seasonal immigrant workers through the federal H2B visa program; and ongoing debate over a long-term farm bill — a massive, multibillion-dollar act that sets farm policy and funds a wide array of agricultural supports and nutrition programs. 

President Donald Trump has acknowledged his aggressive stances on trade and a planned escalation of reciprocal tariffs on April 2 could cause short-term issues for US farmers, asking farmers in a recent address to Congress to bear with him during “a little bit of an adjustment period.”

“Our new trade policy will also be great for the American farmer — I love the farmer,” Trump said during his address, promising his planned tariffs on foreign imports would boost demand for many domestic products. 

But as farmers around the state and nation plot out their plans for the coming year, many in the agricultural community say they’re lacking the one thing they crave most — certainty. 

“The 2025 growing season is going to be a lot tighter from an economic standpoint for farmers,” Tim Boring, director of the Michigan Department of Agriculture and Rural Development, told Bridge, adding that rapid swings in agricultural policy make it “very difficult to continue planning.” 

Trade tension looms

Top of mind for Michigan’s agricultural sector: widespread changes to US trade policy that experts fear will lead to restricted markets, decreased profits for farmers and possible job loss. 

The Michigan Agri-Business Association, which represents agriculture retailers, food processors and other farm-adjacent businesses, has warned that tariffs impacting the agricultural sector “would have substantial economic consequences here in Michigan,” such as disrupting the state’s close two-way trade relationship with Canada and opening the door for international competition in existing markets.

Canada and China have imposed increased tariffs on many US agricultural products in response to Trump’s tariff policies. US tariffs on certain imports could also impact Michigan farmers’ ability to grow food effectively — the vast majority of potash fertilizer supply comes from Canada.

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A Michigan company is in the process of tapping into a potash reserve near Evart and in January received a $1.26 billion loan guarantee from the US Department of Energy to finance construction of the mine. 

Company officials said the current uncertainty highlights the urgent need for domestic potash production.

“When we think of strategic and critical minerals…there is really only one that can be immediately weaponized to impact every human being that needs to eat or buy groceries in the grocery store, and that's potash,” said Ted Pagano, founder and CEO of the Michigan Potash & Salt Co. 

“If our farmers don't have it, or they have to pay substantially for it, that just gets felt from farm to table,” he continued. 

‘Short end of the stick’

But it will likely take years for that facility to come online, meaning farmers will have to make do with existing systems for now.

In early March, the Trump administration reduced tariffs on Canadian-imported potash to 10% down from 25% and recently included potash in an executive order aimed at accelerating critical mineral production. 

And in a recent meeting with members of the American Farm Bureau Federation’s board of directors, US Department of Agriculture Secretary Brooke Rollins said Trump “will not forget our farmers,” promising the administration would work to ensure farmers “are being treated fairly” by foreign trading partners. 

Michigan Farm Bureau President Ben LaCross, a Leelanau County cherry producer who was at the meeting, was optimistic about the administration’s stance, noting in a statement Rollins’ acknowledgement that “agriculture is facing very strong headwinds and challenges from every direction.” 

Some farmers see opportunities to grow their market share, particularly in markets where US farmers’ products are undercut by cheaper imports, said state Rep. Luke Meerman, a Coopersville Republican and a dairy farmer.

“If there needs to be a battle in order to straighten that out, farmers are generally in favor of that,” said Meerman, who last week helped coordinate a tractor rally at the Lansing Capitol to protest state-level wastewater regulations affecting farmers. 

But in the short term, Meerman said farmers are especially vulnerable to retaliation from other countries: “We do get caught with the short end of the stick in tariff wars.”  

Federal cuts and freezes

At the same time, agricultural interests haven’t been immune to the Trump administration’s widespread budget cuts and funding freezes to bring down federal spending, impacting Michigan farmers and projects focused on land conservancy, pest management, food banks and more. 

One organization now seeking new funding sources is the VFW National Home in Eaton Rapids, whose $350,000 AmeriCorps grant funding a demonstration farm for veterans interested in learning the trade was pulled back midway through the program. 

Michael Wilson, the facility’s executive director, said they’ve figured out a way to fund the program through the rest of the year, but are actively working to fill the funding gap to continue what was meant to be a multi-year program. 

“It needs to succeed — it needs to, it’s gone so well,” Wilson said. “The veterans we have in the program right now, none of them would have had the opportunities that they've had in the last several months in learning and growing and understanding agriculture and farming the way they do now.”

The grant rollbacks came as a surprise to Rebecca Carlson, a northern Michigan farmer who told NBC News she would be about $200,000 in debt if the $400,000 grant she was awarded to help pay for seasonal workers doesn’t pan out. 

“We’re at that point where if we don’t get this funding, there could be issues of bankruptcy,” she told the outlet. “The American farmer is failing right now because you’re freezing funding meant to help the American farmer.”

Michigan food banks, too, have been hard hit by USDA funding freezes. A nationwide federal program that delivers locally sourced meat and produce from area farmers to nearby food banks was abruptly put on pause.

US Sen. Elissa Slotkin, a Michigan Democrat who sits on the Senate Agriculture Committee, on Tuesday joined a letter seeking clarity on the extent of the freeze, writing that the cancellation of the funds could result in millions of dollars’ worth of lost food provisions “at a time when the need for food shelves is extremely high.”

Last week, Rollins announced that the USDA would release $10 billion in relief payments to commodity producers, though that benefit doesn’t apply to specialty crop growers, who make up a large portion of Michigan’s agricultural industry. 

Boring, MDARD’s director, said the state agency is closely tracking the changes and will do what it can to help impacted farmers, but noted there are limitations.

“Quite a bit of our state funding does come from federal funding sources,” he said. “We're probably not going to have stopgaps here on a state level to fill all those funding stoppages.”