By Andi Anderson
Michigan agriculture leaders recently discussed how rising tariffs are affecting food costs and supply chains across the state.
Lindsey Scalera, Director of Policy and Leadership Education and Assistant Director of Policy at the Michigan State University Center for Regional Food Systems, shared her concerns during testimony before the Michigan Senate Natural Resources and Agriculture Committee.
“Rising tariffs, as we have heard, kind of cause a cascade effect throughout the food system– we are seeing increases in the cost of ingredients, packaging, equipment and logistics,” Scalera said. “All of those undermine the affordability for families, farmers, food processors, and institutions alike.”
State leaders explained that these cost increases are already affecting Michigan producers.
According to information presented by the Michigan Department of Agriculture and Rural Development, Michigan producers are projected to lose $167 million in exports in the coming year.
“We’re hearing Michigan companies are having trouble remaining competitive in the global marketplace right now,” said Dr. Tim Boring. “To me, that’s the concerning long lasting impact of the current federal approach to trade policy.”
The challenges affect many important crops, including soybean meal, wheat, cherries, and apples. Dr. David Ortega, Professor of Food Economics and Policy at Michigan State University, explained that Michigan’s diverse agrifood system makes the state especially sensitive to trade changes.
He said that uncertainty about tariffs can influence how farmers plan their operations and investments.
“For Michigan, this could mean delayed upgrades on farms, slower expansion of agrifood production and processing facilities, and potentially weakened export capacity,” Dr. Ortega said. “These are the investments aspects that make a food system more efficient and better able to withstand shocks. When they don’t happen, this is what makes the system more fragile and expensive.”
Scalera also shared that the challenges create new opportunities. She noted that buyers may look for more domestic and local food sources to reduce risks tied to international trade. “There's kind of a puzzle piece effect,” Scalera said.
She highlighted state efforts to strengthen local and regional food supply chains through partnerships involving multiple Michigan agencies. These programs support farmers and communities with technical assistance and targeted investments that help build stronger food systems.
Scalera concluded by explaining the long term value of these efforts. She said that “...this farm-to-institution value chain that we've been building over the past more than 10 years opens our doors for growers and communities to provide avenues for healthy eating and really contributes to that local and regional food economy in Michigan.”
Photo Credit: pexels-julia-m-cameron
Categories: Michigan, General