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Policy changes in the new administration will likely impact the farm economy

The head of RaboReasearch Food and Agribusiness for North America says policy changes in the incoming Trump administration could have both positive and negative impacts on the economy.

Roland Fumasi says many U.S. residents view changes to southern border policies as beneficial but could have unintended consequences. “If we go into major deportations and have tighter border policy, then it starts to be inflationary for wages, which have already continued to go up very, very rapidly,” he says.

He says that the Trump administration would create an opportunity for less regulatory burdens in food and agriculture production. “Which helps to lower cost of production and is a potential positive here,” he says. 

However, he tells Brownfield that the nomination of Robert Kennedy, Jr. to lead the Department of Health and Human Services is a wild card. “When you look at the things that RFK Jr. is talking about, we could actually see increased regulatory scrutiny over specific types of food,” he says.  “Even specific types of production practices.”

Fumasi says there is a lot of uncertainty in the ag economy for 2025 and producers will need to be mindful as they implement risk management plans.

AUDIO: Roland Fumasi, RaboResearch