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In Central Illinois, agriculture is synonymous with grain exports, but a crucial aspect often overlooked is farmers’ reliance on international markets for essential crop-growing materials.
Farmers are heavily dependent on imported goods for cultivating crops like corn and soybeans. However, these imports are currently entangled in the web of tariffs imposed by the White House on products from various countries. Kevin Johnson, who leads the Illinois Fertilizer and Chemical Association, is acutely aware of this situation.
“The tariffs have decreased since the president initially introduced them in April,” Johnson explained. “A significant change was the removal of the 25% tariff on Canadian potash. This was crucial because nearly 98% of the potash used in the U.S. is sourced from Canada. While that relief is welcome, we’re now closely monitoring the situation with phosphates. The prices have soared to levels we haven’t seen in years, not due to tariffs but because China has reduced its production. The country is retaining supplies for its own use, impacting global availability.”