Great Falls, MT — Montana farmers, particularly those in the pulse crop industry, are bracing for the economic impacts of new tariffs imposed by the U.S. government. The 25% tariff on goods from Canada and Mexico, along with a 10% tariff on Chinese imports, have already raised concerns across the agricultural sector, threatening to disrupt trade relations that are vital to Montana’s economy.
Paul Kanning, a farmer from Flaxville, is one of many in the state worried about the consequences these tariffs could have on the agricultural market. Kanning, who grows wheat, barley, canola, and pulse crops like dry peas and lentils, says the timing of these tariffs is far from ideal. Montana is the nation’s leading producer of pulse crops, accounting for approximately 62% of U.S. production, valued at around $300 million.
For Kanning and many other farmers, the tariffs come on the heels of previous trade restrictions, particularly those targeting China and India. These earlier tariffs led to a 37% drop in worldwide exports, leaving farmers struggling to rebuild lost trade relationships. While some recovery has occurred, the new round of tariffs threatens to undermine this progress.
“When the U.S. imposes tariffs on steel or aluminum, retaliation often targets agricultural goods,” Kanning explained. “In our case, pulses like peas, lentils, and chickpeas are frequently hit, which makes it hard to predict how things will unfold.”
The uncertainty surrounding the tariffs has already affected business decisions within the agriculture community. According to Kanning, companies that rely on the U.S. market have been hesitant to commit to trade deals with Canada, a significant trading partner for the pulse industry. Cross-border trade of pulses amounts to roughly $200 million annually, making the relationship crucial for Montana farmers.
The strain doesn’t end with trade partners’ retaliation. Kanning also highlighted rising input costs, which have been exacerbated by tariffs. Fuel sourced from Canadian oil, crop protection chemicals from China, and potash fertilizer from Saskatchewan are all subject to increased costs, adding further financial pressure on farmers already facing market uncertainties.
“Does it cause stress? Absolutely,” Kanning said. “I’m hearing from my neighbors, wondering what crops they should plant this year that could still bring in a profit. Pulses were our last reliable option, but if this keeps up, even that might not be enough.”
In addition to trade challenges, Kanning expressed concern about disruptions in food aid programs. Historically, food aid has accounted for about 10% of total agricultural exports, but the emergence of the Department of Government Efficiency has thrown the system into turmoil, leaving farmers uncertain about future food aid shipments.
The ripple effects extend beyond farmers’ fields. The disruption of global trade means that products that would typically be shipped to markets in the Middle East or Africa are sitting idle, impacting the broader supply chain. Farmers are not only losing market access but also the partners who help transport their goods.
As chairman of the USA Dry Pea and Lentil Council, Kanning has been vocal in Washington about the need for a resolution to these ongoing trade disputes. He remains uncertain about the long-term impacts but is hopeful that the situation can be resolved before the summer harvest begins. “We don’t want this to drag on into harvest season,” Kanning said. “We need lasting solutions, not just temporary fixes.”
While Kanning doesn’t claim to be an expert in global trade, he’s optimistic that negotiators can work out a solution before these tariff-induced pressures push Montana’s agricultural sector into further distress. For farmers, the stakes are high, with the future of their livelihoods and the broader economy hanging in the balance.
