As farmers across the Midwest grapple with low commodity prices, volatile weather and persistent uncertainty in global markets, agricultural leaders are increasingly focused on a different deadline looming this summer: the future of the U.S.-Mexico-Canada Agreement.
The trade pact, known as USMCA, faces a mandatory six-year review beginning July 1, a process that farm groups say could have far-reaching consequences for agricultural producers from Indiana and Michigan to the broader Corn Belt.
Nearly 160 agricultural organizations representing farmers, ranchers, processors, exporters and agribusinesses across the United States, Canada and Mexico recently urged trade officials in all three countries to renew and strengthen the agreement, warning that uncertainty surrounding the pact could ripple through North America’s integrated food system.
For producers across Indiana, Michigan and much of the Midwest, the stakes are especially high.
Canada and Mexico are among the largest foreign buyers of Midwestern agricultural products, including corn, soybeans, wheat, dairy products, beef, pork and ethanol. Those export markets have become increasingly important as farmers face shrinking margins and elevated production costs.
According to coalition data, U.S. agricultural exports to Canada and Mexico reached nearly $60 billion in 2024, accounting for roughly one-third of all U.S. agricultural exports by value. The coalition estimates that trade with the two neighboring countries supported nearly 493,000 U.S. jobs and generated approximately $149 billion in economic activity.
For Indiana and Michigan farmers, many of whom depend on export demand to support local grain prices and livestock markets, continuation of the agreement could provide a measure of stability at a time when agricultural economics remain under pressure.
The agreement, signed in 2018 and implemented in 2020, replaced the North American Free Trade Agreement and preserved duty-free access for most agricultural products moving among the three countries.
Supporters argue that USMCA has done more than facilitate trade. They say it has helped create an interconnected agricultural economy stretching from Mexican livestock feeders and food processors to Canadian grain handlers and American crop producers.
In a joint letter to U.S. Trade Representative Jamieson Greer, Canadian Minister Dominic LeBlanc and Mexican Economy Secretary Marcelo Ebrard, agricultural organizations described North America as “the most food secure region in the world,” crediting the agreement with strengthening the resilience of agricultural markets throughout the continent.
The letter noted that trade among the three nations has expanded dramatically over the past two decades, with the value of North American agricultural trade tripling between 2005 and 2023 to approximately $285 billion.
The coalition warned that disrupting those trade relationships could create uncertainty for businesses already confronting low commodity prices, high input costs, natural disasters and geopolitical instability.
“CUSMA/USMCA/T-MEC’s efficiencies reduce costs, and the provisions create stability and predictability — all vital elements that farmers and businesses need to plan for the future,” the organizations wrote.
The agreement’s supporters also point to provisions designed to reduce regulatory barriers and promote science-based agricultural standards. Those mechanisms have helped resolve disputes, including a recent challenge involving Mexico’s restrictions on genetically modified corn, while providing a framework for addressing future trade disagreements without escalating into broader conflicts.
Agricultural groups say those protections are particularly important for Midwestern farmers whose products routinely cross international borders before reaching consumers.
The coalition argues that renewal of the agreement would benefit not only farmers but also rural communities throughout Indiana, Michigan and neighboring states. Export activity supports grain elevators, trucking companies, railroads, food processors, equipment manufacturers, retailers and other businesses that depend on a healthy farm economy.
The review process itself has generated concern because failure to renew the agreement could trigger annual consultations among the three countries, creating prolonged uncertainty for agricultural markets and supply chains.
If all three nations agree to continue the pact, USMCA would remain in force for another 16 years, with the next review scheduled for 2032.
Farm groups say that outcome would provide the certainty needed for producers making long-term investments in land, equipment and production decisions.
As trade officials prepare for negotiations, agricultural organizations across North America are making a unified case that preserving the agreement is about more than export sales. They contend it is essential to maintaining the competitiveness, stability and food security of a continent whose agricultural economies have become deeply intertwined.
For farmers across the Midwest, where much of the nation’s corn, soybeans, livestock and dairy production is concentrated, the outcome could help shape economic prospects for years to come.
CLICK HERE to read the full letter.
