OMAHA, Neb. (KMTV) — Stability. Predictability. That's what supporters of the United States-Canada-Mexico-Agreement say farmers can expect from the deal reached Monday.
Those in the ag industry like Bill Armbrust, are taking a wait and see approach..
"We'll find out as we go forward, right now it looks like it's going to some improvements and so we'll be hopeful,” says Armbrust.
The USMCA, which has been pushed by President Trump as replacement to NAFTA, was passed in 1990's. The new deal doesn't change much for farmers, but Nebraska Congressman Don Bacon says they could see incremental benefits.
"It's better than having instability where tariffs are going up or down, we are now locked in with Mexico and Canada, with basically zero tariff, they had a moderate tariff under NAFTA and those are going away,” says Rep. Bacon.
Armbrust isn't convinced.
"We'll see if the processors and the folks that carry the food from us to the consumer, will take some of their efficiencies and give us the income from that whether than keeping it for themselves,” says Armbrust.
When comparing NAFTA and USMCA, there are changes that have less to do with agricultural.
It adds rules to the pharmaceutical and automobile industries.
As well as upping the labor standards for all three countries involved. That means factories in Mexico have to follow the same rules as they do in America.
"If they're going to pay people pennies on the dollar in Mexico and not enforce regulatory restrictions, they're going to undercut our pricing, that's what this was so important to the American worker,” says Rep. Cindy Axne, Iowa Congresswoman.
With the recent trade war and low commodity prices, Armbrust hopes farmers across the country catch a break with the deal, but isn't optimistic.
"There will be winners, I doubt if the family farmer will be a winner, they'll just be kept where are most of the time, where we have our head just barely above water,” says Armbrust.
