Port strike will create supply chain havoc, hitting farmers hard

A strike by longshoremen from Texas to Maine will reportedly hit American farmers hard, already facing a downward economic spiral.

“We don't need another blow right now, and this will definitely have an impact on agriculture,” said Kip Thom, a former US ambassador. united nations The Food and Agriculture Administration under the Trump administration told FOX Business.

The International Longshoremen's Association longshoremen union, which represents 45,000 members at East Coast and Gulf Coast ports, could go on strike starting Oct. 1 if a deal is not reached by Monday.

As a port strike approaches, the port workers' union's demand for a complete ban on automation is called into question.

Both sides of the labor dispute are at an impasse over issues such as wages and port automation.

The strike will have a domino effect not only on food supplies, but also on container availability, storage, and rail and truck freight.

“They're not going to process any more chicken because they can't sell it or there's nowhere for it to go. Chicken is a perishable item. We can get beef, pork and dairy at the same time. “So it just backs up the entire supply chain, and it comes back to the farmers,'' Tom said. “What happens is that excess inventory comes onto the market, so the market price goes down.”

What products can be destroyed by a port strike?

The strike is estimated to cost the U.S. economy up to $5 billion per day, according to a JPMorgan analysis.

Separately, more than 300 farmers and ranchers are pushing for a farm bill to address the declining industry. U.S. farm net income is projected to decline by more than 27%, or $55.61 billion, starting in 2022, according to the U.S. Department of Agriculture. These statistics were highlighted and detailed by the American Farm Bureau Federation in a September letter to Senate and House leadership.

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Farmer Ken Haas uses a rake to gather freshly cut hay to dry before being released on bail in Elizabeth, Illinois, on August 11, 2024. (Scott Olson/Getty Images)

“Since the beginning of the year, harvest prices for major crops traded on the Chicago Mercantile Exchange and the Intercontinental Exchange have fallen an average of 21%, but total production costs remain near record levels,” the group wrote. There is.

“We are already at the point where we came from under the Trump administration. [a] $32 billion trade surplus. And currently, a deficit of $42 billion is expected by 2025. So we have already suffered a huge loss of exports and quality food,” Tom said.

FOX Business' Eric Revell contributed to this report.