Changes in global trade impact U.S. farmers’ profit

“We’re in a period where agriculture is experiencing a structural change,” said Sarah Tveidt, vice president of client services for The Directions Group. “There are a lot of dynamics that are shifting globally that are changing the competitive landscape for U.S. agriculture.”

The Directions Group, Tveidt explained during a presentation at the 2025 GroundBreakers Conference, hosted by Compeer Financial, is a strategic insights firm that is focused on helping businesses grow, innovate and differentiate themselves in the marketplace through integrated intelligence.

“We work hard to understand people, businesses and the intricate connection between the two,” said Tveidt, who was raised on a family farm in South Dakota. “Our core belief is the success of the food system and U.S. agriculture is essential to U.S. security.”

To be successful, Tveidt said, it is important to understand the operating environment.

When it comes to the Middle East, Tveidt said, the country the United States needs to pay attention to is Saudi Arabia.

“Our ability to make a deal with Saudi Arabia is key to stability between the Middle East and U.S. relations,” Tveidt said.“A deal would stabilize oil prices and it will also help to squeeze out the Iranian influence that is really causing issues with the Red Sea shipping lanes,” she said. “About 10% of the world’s global trade flows through the Red Sea.”

Ultimately, the client services leader said, the United States is in a great power competition between the BRICS countries and the West.

“The BRICS countries of Brazil, Russia, India, China and South Africa together represent 35% of the global GDP and just under half of the global population at 45%,” Tveidt said. “The BRICS are offering an alternative to the West in what we know as global leadership today.”

U.S. farmers will see increasing commodity risks, Tveidt said, because of the structural changes in global competition.“In this environment, farmers must increase their net operating income and diversify their income streams,” she said. In addition, farmers should strive to be in a position to reinvest and innovate.

“Focus on increasing efficiency and driving down costs,” she said. “Participate in new revenue streams by seeking out collaborations and learn from each other.”