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In recent years, one thing has become clear: the only reliable way for farmers to secure their future is by building direct relationships with local customers. Global pandemics, wars, and now tariffs serve as constant reminders that independent farmers have little control over the global market.
The best way to minimize the impact of tariffs is to establish direct connections with domestic customers. Whether selling directly to consumers or through wholesale contracts, owning these relationships reduces exposure to global market fluctuations.
Farmers—it’s time to take control of your future. Here’s how.
A tariff is a tax imposed by a government on foreign goods entering a country. The United States has proposed a 25% tariff on all imported Canadian products (except for oil, which will face a 10% tariff). In response, Canada has announced 25% tariffs on US$115 billion worth of American imports, including meat, dairy, produce, and more.
To put this in perspective, in 2023, Canada and the U.S. traded US$73 billion worth of food. With these tariffs, an estimated US$18.5 billion in additional costs will be introduced into the food supply chain.
Tariffs are applied and collected at the border. When goods enter a country, the importing country charges the tariff and requires payment from the importer before delivery. For example, if a U.S. grocery store imports meat from Canada, they pay the supplier’s invoice as usual but must also pay the 25% tariff directly to the U.S. government. Canadian farms do not need to alter their invoicing process; the tariff responsibility lies with the importer.
These tariffs strongly discourage American and Canadian buyers from purchasing foreign goods. Faced with a 25% price increase, most buyers will opt for local products, making imported goods less competitive. This shift puts pressure on producers and distributors reliant on international contracts while also challenging buyers who depend on imported stock.
However, this shift also creates more opportunities for local farmers, producers, and distributors as buyers turn to domestic suppliers to avoid price hikes.
One of the best ways for consumers to mitigate rising grocery costs is to buy directly from farmers. Similar to how COVID-19 reshaped food security, these tariffs will influence the availability and pricing of food in both countries, driving demand for local products.
For farmers, this presents a major opportunity to expand direct-to-consumer (DTC) sales, whether through Community Supported Agriculture (CSA) programs, home delivery services, shipping, food hubs, or meat box subscriptions.
👉 Curious how a 300-member CSA operates on Local Line? Learn how Deck Family Farm fulfills 300+ orders while saving 20 hours per week.
As distributors, retailers, restaurants, and other wholesale buyers adjust to rising costs, the trade war presents a unique opportunity for farmers to enter the local wholesale market. These buyers need to minimize disruptions and keep prices stable for their customers. Those already engaged in local purchasing will likely expand their programs, while others—under increasing pressure—may be motivated to start.
Now is the time for farmers to position themselves as reliable, local suppliers.
This is an opportunity to build stronger, more resilient sales channels by forging direct relationships with buyers, from individual consumers to large-scale distributors.
If you already sell directly to consumers or wholesale buyers, now is the ideal time to secure contracts. As tariffs impact international trade, additional supply—especially in Canada—will flood the market.
For example, Canada currently exports 47% of its domestic cattle production to the U.S. If this supply shifts to the Canadian market due to tariffs, local producers will face heightened competition.
To stay ahead:
👉 Need help building your subscription model? Download our free guide: How to Sell and Manage Subscriptions.
If you primarily sell internationally and want to pivot to domestic sales, start by securing your supply chain. Before marketing your products, ensure your processing, packaging, logistics, and pricing are optimized for local distribution. Without a strong supply chain, transitioning to the domestic market will be challenging.
Local Line provides the tools you need to establish direct relationships with customers. For over a decade, thousands of farms across the U.S. and Canada have used Local Line to streamline their sales.In a recent study, farms using Local Line reported a 23% increase in sales and a 9.5% growth in average order size annually. These are real results from real farmers.To scale successfully, you need the right tools. Local Line offers:
Local Line was designed with farmers in mind, helping them adapt, grow, and scale as their business evolves.Beyond software, Local Line serves as a trusted local food sourcing platform for wholesale buyers—from small retailers to national chains. Our network includes buyers like Chipotle, Roche Bros, Green Top Grocers, and more, connecting farms directly to their markets.
We want you—the farmer—to become a price maker, not a price taker. That’s why we launched the Tariff Stability Program (TSP), which accelerates buyer-supplier relationships to strengthen the local food economy. Learn more about the program or chat with our team to see how we can help you.
With the right strategy, these tariffs could become an opportunity rather than a challenge. Take action now to strengthen your farm’s position in the local market!
The new tariffs will make cross-border agricultural trade significantly more expensive, discouraging international sales and increasing competition in domestic markets. Farmers who rely on exports may struggle, while those focused on local sales could see increased demand as buyers seek to avoid tariff-related costs.
The best way to minimize risk is by building direct relationships with local customers. Whether through CSAs, online DTC sales, or wholesale contracts with grocery stores and restaurants, a strong domestic sales strategy reduces reliance on international markets.
DTC sales allow farmers to bypass traditional supply chain challenges, increase profit margins, and build stronger customer relationships. Consumers are increasingly willing to pay a premium for local food, making this a prime opportunity to expand CSAs, home delivery programs, or farm memberships.
With rising import costs, retailers, distributors, and food service businesses are actively seeking local alternatives. Farmers can position themselves as reliable suppliers by locking in wholesale contracts, demonstrating consistency in supply, and leveraging marketplaces like Local Line to streamline transactions and logistics. Download the wholesale readiness program to best position your farm for wholesale.
Local Line provides farms with the tools to manage and scale their direct sales, from inventory management and online ordering to subscriptions and invoicing. The platform connects farmers with wholesale buyers and offers the tools to sell wholesale, such as price lists, payment options and invoicing, and streamlined order processing with pick slips, pack slips, and labels. Learn more about how Local Line leads the way for wholesale sales.
The Tariff Stability Program (TSP) is a program designed by Local Line to help farmers and buyers navigate trade disruptions by accelerating connections within the local food system. It provides resources and tools to help farmers secure stable domestic sales channels, ensuring long-term resilience against market fluctuations.
