New York farmers hit by the Trump administration’s tariffs now can get financial help repay some of the costs and lost business they suffered. Dairy and agriculture experts say the new Agricultural Resiliency Against Tariffs Program can be effective in a sector that often works with tight profit margins.
The tariff battles that were waged by the Trump administration made US products more expensive on the global market as countries retaliated. Northeast Dairy Products Association Director Allyson Jones-Brimmer said that hit hard with one sector.
“Dairy is a global marketplace. Our New York State dairy farmers rely on a certain amount of exports to sustain the milk price and to sustain markets for dairy foods. So that ability to export has an impact on what price farmers receive, even if their own milk is not what's getting exported. It's kind of the big picture there that impacts them,” said Jones-Brimmer.
But that’s only part of the impacts of tariffs. Cornell University Applied Economics Professor Wendong Zhang explained things got more costly for farmers, especially at critical planting and harvest times when they could not wait or forego certain expenditures.
“So, you need to get all your ducks in a row including all the materials, and often many of the materials are imported. Even for some of the dairy, some of the antibiotics and vitamins for dairy and livestock sectors are also imported.”
Jones-Brimmer added there are other necessities, “equipment, lumber, supplies from other countries, and having tariffs on those products makes them more expensive.”
Governor Kathy Hochul’s Agricultural Resiliency Against Tariffs Program was designed to help farmers recoup some of those shortfalls. Dairy, livestock, specialty crop and aquaculture growers can apply for up to 25-thousand dollars to cover lost income or increased costs due to tariffs.
Zhang said it can ease some of the losses, but also mitigate the loss of federal agriculture supports. “We have way less ad hoc payments like this, both at the federal and state level. But with the disruption related to tariffs and trade, we're seeing a lot more,” Zhang added. “New York, along with Connecticut, are the first two states that start to have state level programs.”
Jones-Brimmer with the Dairy Products Association pointed out the grants will not fully replace the lost business or higher costs, but, “it's really a recognition that our local food production is important in this state. We want to make sure we have local food that's affordable. When you combine a lot of the different initiatives, it all adds up to a substantial impact on the state's farms.”
Applicants must derive two thirds of their income from agricultural to make sure the grants help the often-struggling state farmers. There are two parts of the program: Track 1, for Cow Dairy farms; Track 2, for Livestock, Livestock Products, Specialty Crops, Aquaculture.
Applicants must meet eligibility guidelines and restrictions:
- Applicants must have at least two-thirds of federal gross income in excess of $30,000 derived from agricultural activities, as defined by New York State Tax Law.
- Applicants must produce eligible crops within New York State.
- Eligibility and production data must be certified by a qualified financial professional.
- All applicants must provide a complete substitute W-9 form, necessary for payment.
- Dairy farm applicants must sign a records release form, allowing confirmation of milk production data.
