The Growing Concerns of U.S. Farmers: Trade and Labour Challenges

Introduction 

In a previous discussion, we explored how U.S.-imposed tariffs have affected the Irish agricultural sector. Now, we’re shifting focus closer to home, looking at how these policies—along with labour shortages and rising supply chain costs—are making life increasingly difficult for American farmers.

Across the country, producers are facing mounting pressure. Trade disputes are threatening exports, fertiliser prices are skyrocketing, and a shrinking workforce is making it harder to keep farms running efficiently. These aren’t short-term issues—they’re shaping the future of U.S. agriculture in ways that could have long-lasting consequences.

Dairy Exports Under Pressure

The U.S. dairy industry has long depended on exports to remain profitable. In 2024, dairy exports totalled over $8 billion—a record-breaking figure that demonstrated the industry’s global importance. Mexico remains the largest buyer, accounting for nearly a third of U.S. dairy exports.

But as trade tensions heat up, so does uncertainty for dairy farmers. Early 2025 saw the U.S. slap 25% tariffs on imports from Canada and Mexico, along with 20% tariffs on Chinese goods. Unsurprisingly, these countries responded with retaliatory measures, directly impacting American dairy exports.

For dairy farmers, this is a serious blow. Many operate on razor-thin profit margins, meaning that any disruption to international markets can quickly cause financial distress. If exports stall, an oversupply at home could drive prices down further, making it even harder to stay in business. Without stable trade agreements, the future of U.S. dairy farming is looking increasingly fragile.

A Shrinking Workforce: The Labour Shortage Crisis

Even if trade issues were resolved overnight, another crisis remains—labour shortages.

American agriculture has long relied on immigrant workers, particularly for labour-intensive jobs like harvesting. But the availability of these workers has dropped sharply, with new immigrant entries into the sector falling by over 40% in recent years. To make matters worse, the farming workforce is ageing, with the average American farmer now approaching 60 years old and fewer young workers entering the field.

Immigration policies have only worsened the problem, making it harder for farms to legally hire the labour they need. The H-2A visa programme, designed to provide temporary farmworkers, has grown significantly, but it remains plagued by bureaucratic delays and inefficiencies. Some inspections have even uncovered widespread labour violations, further complicating the situation.

Without a stable workforce, farms risk seeing crops left unharvested, production slowing, and costs continuing to climb. As food production becomes more difficult, the knock-on effect will be higher prices at the supermarket and increased food waste. If these shortages persist, the long-term sustainability of U.S. farming is in real jeopardy.

Fertiliser Costs and Supply Chain Struggles

Fertiliser is one of the most crucial inputs in farming, and the U.S. depends heavily on Canadian imports to meet its needs. Nearly 90% of the potash fertiliser used in American agriculture comes from Canada, alongside a significant portion of nitrogen fertiliser.

However, recent trade disputes have disrupted this essential supply chain. In early 2025, the U.S. introduced 25% tariffs on Canadian potash imports, adding to an already volatile market. Fertiliser prices had already been climbing due to global shortages, and these new tariffs are expected to drive costs up by another 25%.

For farmers, higher input costs mean tighter profit margins. Many may be forced to scale back production, which in turn could lead to lower crop yields and higher food prices for consumers. If these supply chain disruptions continue, farming will become less profitable, pushing some producers out of business altogether.

Addressing the Labour Shortage

Labour shortages remain one of the biggest threats to U.S. agriculture. While trade disputes come and go, farming depends on a workforce that is increasingly difficult to secure.

For decades, farms have relied on foreign workers to do jobs that are often physically demanding and seasonal in nature. However, many of these workers still lack legal status, creating uncertainty for both employees and employers.

Even with the previously mentioned H-2A visa programme, which allows seasonal workers into the U.S., farmers continue to struggle with inefficiencies, delays, and added costs. Reports of poor working conditions have also raised concerns, highlighting the need for reforms that protect both farmworkers and farm owners.

Without a clear and effective immigration policy, farms will remain in a constant struggle to find reliable workers. If these shortages persist, agricultural production will suffer, leading to increased food prices and greater reliance on imports.

A Path Forward

The challenges facing U.S. agriculture are significant, but with the right policies, the industry can regain stability and long-term sustainability. Addressing these key areas will be crucial:

• Fairer trade policies: Farmers need reliable and predictable market access without the constant threat of tariffs and retaliatory measures. Trade agreements should safeguard agricultural exports and foster stable, fair international relationships.
• Addressing EU trade barriers: The EU remains a major market, yet strict regulations limit U.S. exports. Negotiating better trade terms—particularly on hormone-treated meat and dairy—could unlock new opportunities. Greater alignment on food standards would improve competitiveness while maintaining high safety measures.
• Strengthening supply chain resilience: Heavy reliance on imported fertiliser and fuel leaves U.S. agriculture vulnerable. Ensuring affordable access to essential imports through trade agreements and investment in domestic production would reduce dependency and protect farmers from price shocks.
• Fixing the labour crisis: A stable and legal workforce is vital. Improving the visa system, reducing delays, and providing clearer legal pathways for farmworkers would help farmers secure reliable labour while ensuring fair protections for workers.

By tackling these issues, policymakers can help restore confidence in the sector, safeguard food security, and support the long-term future of American farming.

Conclusion

The pressures on U.S. agriculture—trade disputes, labour shortages, and soaring fertiliser costs—are mounting, making it harder for farmers to stay afloat. If these issues aren’t addressed, the impact will be felt far beyond rural communities, with rising food prices and increasing strain on supply chains.

Farmers don’t need handouts; they need fair trade policies, stable supply chains, and a reliable workforce to keep their businesses running. That means easing restrictive tariffs, investing in domestic production, and fixing immigration laws so farms can hire the workers they depend on.

Quick fixes won’t cut it—real action is needed now to stop more farms from closing and to secure the future of U.S. agriculture. Farmers have always been resilient, but they can’t keep going without policies that give them a fair chance to succeed.

*By Anne Hayden MSc., Founder, The Informed Farmer Consultancy.