PLEASANTVILLE, OH (WCMH) — Monday, President Donald Trump unveiled a major revision to the Free Trade Agreement between the United States, Mexico and Canada, calling the new deal USMCA. The new deal will address concerns from the US auto tariffs and allow US farmers greater access to Canada’s dairy market.
The deal won’t go into right away. Most of the key provisions won’t start until year 2020 but dairy farmers say this is huge win for their industry.
Right off of US Route 22 in Pleasantville, Ohio is Moellendick Dairy Farm. This 5-year generation dairy farm is now ran by Chuck Moellendick and his father. He hopes to pass it down it to his son, that’s if there is a farm to pass down to.
“Our dairy economic system here is supplying demand and right now we are really oversupply,” said Moellendick.
For the past four years, Chuck says the dairy industry has really struggled.
“To be profitable we’d have to be up close to $20 hundred-weight. Right now we’re running about $14, $13 hundred-weight. And that is way below the cost of production,” said Moellendick.
This is due to Canada shipping their cost of dairy to countries like Mexico for a lower price. With US farmers in competition with Canada , farmers are producing too much milk and not able to make a profit.
“Mexico is our biggest country that we export to. Canada created a class seven milk prize that enable them to undercut our prices going into Mexico,” Moellendick says.
Moellendick Dairy Farm is currently milking 70 cows twice a day, chuck says he hopes the new deal between the North American countries will spark trade deal conversations in Asia.
“Hopefully this is a domino effect where we can also get china to remove tariffs and japan so we can ship milk over there.”