The Michigan Department of Agriculture and Rural Development (MDARD) has announced that the state achieved a record $2.9 billion in agriculture-related exports in 2024, The Ticker reported.

Director Tim Boring discussed these unexpectedly strong numbers and addressed concerns regarding how new foreign trade tariffs may challenge Michigan's agricultural sector.

Last October, the USDA approved a request from Governor Gretchen Whitmer for a disaster declaration concerning Michigan’s cherry industry. This declaration affected Antrim, Grand Traverse, and Leelanau counties, along with eight neighboring counties, allowing cherry farmers access to low-interest emergency loans to help cover their actual losses. 

MDARD estimated that sweet cherry farmers encountered crop losses of up to 75% in 2024 due to adverse conditions such as heavy rainfall, high humidity, mold and disease, and severe pest infestations.

Despite one of the worst cherry seasons on record in northern Michigan, MDARD reported several positive highlights for the state's agriculture in 2024. Overall, ag-related exports increased by more than $282 million compared to 2023. The processed foods segment led with $636 million in exports, followed by categories such as sugar beet, soybeans, soybean residue, brewing waste, and animal feed at $393 million; dairy products at $303 million; pasta, bread, and other starches combined at $285 million; and wood products totaling $252 million.

"This record-breaking success for our agriculture, food, and forestry sectors highlights the high quality of Michigan products in demand both domestically and internationally," stated Boring. He emphasized that these numbers demonstrate the state's potential for economic growth when given proper support and fair trade conditions.

However, the newly imposed tariffs are a significant concern for Michigan’s agricultural industry as it enters 2025. Since taking office two months ago, President Donald Trump has initiated an aggressive trade policy affecting key U.S. trading partners. This includes a 10% tariff on Canadian energy and oil, 25% tariffs on all other imports from Canada and Mexico, and increased tariffs on Chinese goods from 10% to 20%.

Effective March 4, these tariffs coincided with Canada's announcement of a 25% retaliatory tariff on $155 billion worth of American goods. The initial phase affects $30 billion in U.S. products, including beer, wine, coffee, peanut butter, orange juice, appliances, clothing, and various paper products. Future phases could impose tariffs on American agricultural goods like fruits, vegetables, beef, pork, and dairy.

China has also retaliated with tariffs of 15% on U.S. chicken, wheat, and corn, and 10% on soybeans, pork, and fruit, while Mexico is postponing retaliatory tariffs until next month.

Boring has voiced concerns about the potential adverse effects of the Trump trade war on Michigan’s agricultural producers, particularly for the export market heavily reliant on countries affected by the new tariffs. 

"Canada is our largest trading partner, accounting for more than $1.25 billion in economic activity, followed closely by Mexico at nearly $500 million. Additionally, countries across the Pacific, including South Korea, Japan, and China, are significant partners," Boring noted.

While MDARD currently lacks specific projections for the impact of tariffs on Michigan’s 2025 ag-related export figures, Boring stated they are in regular contact with federal officials, international colleagues, and local farmers to assess potential repercussions.

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