Trump and Musk: 4 Ways To Help Farmers in the US Economy
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David Nadelle
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Nicholas Morine
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The much-anticipated discussion between former U.S. President Donald Trump and Tesla CEO Elon Musk went ahead on Monday, but not without a couple of hitches. After a 40-minute technical delay, the two allies spoke candidly for two hours on Spaces, X’s live audio conversation platform, starting with the recent assassination attempt on Trump. Illegal immigration, inflation, the current administration and climate change were also discussed.
Although Politico writers Corbin Hiar and Chelsea Harvey have suggested that Musk might be the only person alive who could potentially change Trump’s mind on topics central to rural communities and agricultural workers, such as addressing the country’s massive ecological footprint and potential of transitioning to zero-emissions, Musk emphasized the conversation was just that. “It’s really intended to just get a feel for what Donald Trump is just like in a conversation,” Musk said. Will a Trump win benefit American farmers?
How Will a Re-Elected Trump Help U.S. Farmers?
With the eco-minded Musk increasingly leaning right in line with Trump’s political positions, the future of climate change policies, which directly affect the crops, livestock, soil and water resources of America’s farmers and ranchers, is uncertain.
What is a sure thing is Trump’s plans to roll back any President Biden-initiated policies that impacted farm owners and workers — which, depending on who you’re talking to, might be a good or bad thing.
GOP boosters are in favor of Musk becoming a trusted confidant to the ex-president and the Republican party because he brings a different perspective to policy-making, appeals to a younger demographic and can graciously fund the campaign to re-elect Trump, via the political action committee, America PAC.
Democrats fear Musk’s involvement with Trump may compound what they feel is an already too far-right platform that will ignore a large section of the American public.
Here are four ways Trump (with Musk in tow) can help farmers in the U.S. economy, should he return to the White House.
1. Farmers Have To ‘Get Rid of Their Cattle?’
While the Trump-Musk discussion touched upon several climate-related topics, the two addressed concerns specific to the American farmer only once, with Trump alluding to attempts by government of the Netherlands to pay farmers to close cattle farms in order to cut nitrogen emissions, which cause damage to the air and water and warm the earth.
“How crazy is that where, I mean, you have farmers that are not allowed to farm anymore and have to get rid of their cattle and the whole world is a little crazy, but it’s largely taken its lead from us,” the former president said.
Although there is nothing quite similar to what the Netherlands government was proposing in the U.S. (aside from the current administration’s incentives to help stop the spread of H5N1 virus [bird flu] at farms, per CNN), Trump will likely stick to his first term strategy of providing bailouts and cutting checks to farmers to get their businesses back on their feet while trying to come up with solutions to the underlying challenges facing farmers that were intensified by the COVID-19 pandemic so farmers won’t have to sell off.
2. Reconsider Labor and Energy Policies
Having felt the cost of Trump’s first presidential term, there is a substantial group of farmers who feel Trump’s threats of renewed trade wars and immigrant deportations could ruin their businesses should he prevail in the November presidential election. Others welcome Trump’s insistence on legal immigration and an overhaul of current laws and regulations that are seen as stifling to farm owners.
Regardless, new immigration laws will have a deep impact on labor availability in agriculture and will need corresponding prioritization of worker programs and securing a consistent and law-abiding workforce for farms. Trump may need to address the growing farmworker wage gap as well, as detailed by the Economic Policy Institute.
While Trump is not 100% sold on alternative energy sources and quick transitions to energy-efficient industrialization, he has shown an interest in production techniques to help farmers thrive. For example, for many corn growers, Trump’s continued support of the ethanol business is vital — and with Musk on board to plant more seeds, Trump may come around to exploring newfound avenues. Expect Trump to keep pushing for laws that encourage the use of biofuels, since they would help U.S. farmers who produce ethanol.
Improving crop insurance programs and risk management tools to assist farmers in mitigating the effects of natural catastrophes, market volatility and other issues is a long shot, but as climate crisis intensifies — some say quickly; Trump and Musk say slower than people think — there is no question that farmers will need aid in the aftermath of more frequent billion-dollar disasters in the U.S.
3. Repair Past Trade Wars
As a major and influential constituency, the Trump administration previously stated he is fighting for America’s farmers. In a Fox Business opinion piece published November 2020, then Agriculture Secretary Sonny Perdue praised the former president, saying, “Whether by cutting taxes for all Americans, fighting for better trade deals, expanding the use of ethanol, or connecting rural Americans to high-quality broadband Internet, the President has made sure that America is better off.”
However, according to CNBC, Vincent Smith — a visiting fellow at the right-leaning American Enterprise Institute — said the Trump administration “severely disadvantaged” farmers with a reckless trade policy.
Trump’s tariffs on Chinese imports during his presidency sparked retaliatory levies on agricultural items from the U.S. Trump’s strong stance on imposing tariffs and renegotiating trade agreements that help farmers require give-and-take strategy, especially with North American allies like Canada and Mexico — and global agricultural heavies like China.
4. Tax Incentives and Regulatory Reform
A potential second Trump administration is promising tax breaks for all, including for corporations. He may seek to extend or expand tax breaks for farmers, such as advantageous capital gains treatment, estate tax reductions or deductions for farm equipment and supplies.
Musk is no stranger to navigating the tax incentives and would be able to provide useful information on the subject. Trump has provided billions of dollars in direct aid to farmers through programs like the Market Facilitation Program (MFP) to offset losses from trade disputes. He will likely continue or expand these types of programs to provide financial assistance during times of crisis or market instability.
Trump and Musk both place a high priority on deregulating rules that hurt businesses. Regulatory changes will need to extend to farms and while Trump may want to streamline agricultural government departments, he’ll also probably want to abolish laws that he considers burdensome to farming businesses, such as environmental limits, labor standards or policies governing water rights and land use. If Trump takes the needs of farmworkers and owners into consideration and can relate to their concerns, there’s a chance for greater flexibility, improved resource management and, ultimately, an American agricultural rebound.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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