Planet Money: What Happened to U.S. Farmers During the Last Trade War

Release Date: May 14, 2025
Hosts: Amanda Aronczyk & Jeff Guo
Guests: Lavon and Craig Griffune, Rob Johansen, Aaron Lehman

Introduction: Meet the Griffunes

The episode opens with Hosts Amanda Aronczyk and Jeff Guo introducing Lavon and Craig Griffune, seasoned farmers and proud grandparents from Iowa. Managing a sprawling 1,100-acre farm north of Des Moines, the Griffunes raise a diverse array of livestock, including chickens, pigs, sheep, turkeys, and limousine cattle—a lean French breed prized for its meat quality.

Notable Quote:

Craig Griffune [01:38]: "They taste expensive."

While livestock farming is a noble endeavor, the Griffunes emphasize that the primary source of their income stems from cultivating corn and soybeans, which they sell to international food processors.

Building International Trade Relationships

Lavon and Craig have long invested in fostering strong trade relationships, especially with China and Japan. Their farm has hosted high-profile visitors, including the Mayor of Beijing and Mexico's Secretary of Agriculture, underscoring the importance of these international ties.

Notable Quote:

Lavon Griffune [02:11]: "All of us in the farming industry have helped court international trade deals over the years."

By exporting billions of dollars' worth of soybeans and other crops annually, Iowa solidified its position as a major agricultural exporter.

The Onset of the Trade War

In April (presumably 2018), President Trump initiated a series of tariffs targeting various Chinese goods. China retaliated fiercely, imposing a staggering 135% tariff on U.S. soybeans, among other U.S. agricultural products like corn, wheat, pork, dairy, and cotton.

Impact on Farmers: This retaliatory move drastically reduced demand for American grains in China, leading to plummeting prices per bushel and creating financial strain for farmers like the Griffunes.

Notable Quote:

Craig Griffune [03:01]: "Ever since President Trump got elected, it's been up and down, more down than up."

Farmers began monitoring crop prices meticulously through services like Harvest Profit, receiving real-time updates directly from Chicago's commodity markets.

Navigating Market Volatility

With soybeans and corn prices falling to break-even levels, the Griffunes and other farmers faced tough decisions. They opted to store excess grains in large silos, attempting to wait out the market's volatility, though grain cannot be stored indefinitely without quality degradation.

Notable Quote:

Craig Griffune [03:57]: "We try to hit the highs when the market goes up and stay away from the lows."

Despite strategic storage, the uncertainty of market recovery posed significant risks to farm viability.

Historical Context: The Commodity Credit Corporation (CCC)

To understand the government's response, the hosts delve into the history of the Commodity Credit Corporation (CCC), established in the 1930s by Franklin D. Roosevelt to stabilize farm incomes during the Great Depression and Dust Bowl. The CCC had traditionally been utilized for disaster relief, loans, and trade missions.

Notable Quote:

Rob Johansen [07:57]: "Agriculture is becoming more productive."

This historical backdrop sets the stage for the unprecedented use of the CCC during the recent trade war.

Impact of the 2018 Trade War on U.S. Farmers

The trade war severely disrupted established trade relationships. Chinese retaliation wasn't limited to sorghum; it extended to a plethora of U.S. crops, including soybeans, corn, dairy, hogs, and specialty products like almonds and cherries.

Notable Anecdote: A cargo ship, the RB Eden, en route to Shanghai, was forced to reroute around Africa upon learning of China’s 179% tariff on sorghum, highlighting the immediate logistical and financial turmoil caused by the tariffs.

Farmer Perspectives: Voices of Concern

Aaron Lehman, president of the Iowa Farmers Union, shares the grim reality faced by farmers. Initially dismissing the tariffs as posturing, Lehman soon realized the severe economic impact as crop prices plummeted, leading to delayed investments and declining household incomes.

Notable Quote:

Aaron Lehman [13:26]: "The age of the average farmer in Iowa is 57 years old, and it's only getting older."

The financial strain made it increasingly difficult to attract the next generation to farming, threatening the sustainability of family farms.

Government Intervention: Market Facilitation Program

In response to the crisis, the Trump administration directed the USDA to implement the Market Facilitation Program (MFP) using funds from the CCC. This unprecedented move aimed to provide $23 billion in aid to farmers to mitigate the adverse effects of the tariffs.

Notable Quote:

Rob Johansen [20:11]: "The president was very interested in making sure that US Farmers knew that we were going to have their backs."

The program required farmers to apply through local USDA offices, ensuring that aid was distributed based on calculated needs without overwhelming the CCC's reserves.

Evaluating the Effectiveness of the MFP

While the MFP provided crucial financial support, it faced criticism regarding transparency, equitable distribution, and the extent of its impact. Some argued that it was a temporary band-aid rather than a comprehensive solution, and concerns arose about whether the funds reached all affected farmers fairly.

Notable Quote:

Craig Griffune [25:26]: "They sent a band-aid."

Despite these critiques, Rob Johansen of the USDA regarded the program as a necessary emergency measure that prevented a more catastrophic collapse of the farming sector.

Notable Quote:

Rob Johansen [24:33]: "Ultimately, it would have been way worse without the emergency CCC funds."

The Aftermath: Lasting Effects of the Trade War

In January 2020, the Phase One trade deal between the U.S. and China promised to reduce tariffs and include commitments from China to purchase $80 billion worth of U.S. agricultural products over two years. However, these promises were not fully realized, exacerbated by the COVID-19 pandemic and ongoing trade tensions.

Long-Term Impacts: China diversified its soybean imports, increasing purchases from Brazil, Argentina, and Uruguay, permanently altering the agricultural export landscape for U.S. farmers.

Notable Quote:

Craig Griffune [26:31]: "Volatile. That's what I wanted to say."

The erosion of long-established trade relationships and the shift towards South American suppliers have had enduring repercussions for American agriculture.

Lessons Learned and Future Implications

The episode concludes by reflecting on the lessons from the 2018 trade war. It highlights the importance of robust trade relationships, the limitations of emergency government interventions, and the potential for long-term economic shifts resulting from geopolitical conflicts.

Notable Insight:

Lavon Griffune [25:56]: "The band-aid did not fix everything. And also something fundamental had been lost."

As trade tensions persist into 2025, the experiences of the Griffunes and their peers serve as a cautionary tale about the vulnerability of globalized agricultural markets to political and economic upheavals.

Conclusion

"What Happened to U.S. Farmers During the Last Trade War" offers a comprehensive exploration of the 2018 trade conflict's devastating effects on American agriculture. Through personal stories, historical context, and expert analysis, Planet Money underscores the intricate interplay between global trade policies and the livelihoods of farmers, emphasizing the need for strategic resilience in an increasingly volatile economic landscape.

Production Credits:
Produced by Sylvie Douglas
Edited by Jess Jiang
Engineered by Robert Rodriguez
Fact-checked by Sierra Juarez
Executive Producer: Alex Goldmark

Special Thanks: Benga Agilori, Grant Gerlach, and Joanna Broder.