By Scout Nelson
Minnesota farmers are closely watching the future of the United States-Mexico-Canada Agreement (USMCA) as its official review began on July 1, 2026. The agreement allows tariff-free trade between the United States, Canada, and Mexico and has supported agricultural exports for many years. However, uncertainty about its future is creating concern across the farming community.
President Donald Trump recently questioned whether the agreement should continue, although he also said he may still approve it.
"I would rather not have the agreement, but I may sign it,” said Trump. “We do better as a country if we don't have an agreement."
Even if the United States leaves the agreement, the USMCA will remain in effect until 2036. Still, the discussion has added uncertainty for producers already dealing with low crop prices and difficult market conditions.
Canada and Mexico remain two of Minnesota's largest agricultural trading partners. Minnesota Agriculture Commissioner Thom Petersen said the agreement has helped strengthen those relationships and warns that leaving it could damage trade cooperation. Nearly 160 agricultural and food organizations from the United States, Canada, and Mexico have also requested renewal of the agreement.
Possible tariffs could increase production costs because important farm inputs, including potash fertilizer for soybeans, are largely imported from Canada. Livestock producers are also concerned that export opportunities may become more limited.
A Purdue-led study funded by the Corn Refiners Association found that tariff reductions under the USMCA and the former North American Free Trade Agreement have helped reduce consumer costs.
“If I'm raising grass-fed beef, I'm taking it to a local butcher facility, and that's being sold from farm to the table, and that way I'm protecting myself,” said LaPlante. “[I’m] trying to establish local businesses, local economies to feed local people.”
Photo Credit: gettyimages-fertnig
Categories: Minnesota, Crops, Government & Policy