Uncertainty in U.S. trade policy is among the key challenges facing Cargill CEO Brian Sikes in 2025.

Sikes, who succeeded Dave MacLennan as president and CEO of Cargill in 2023, discussed the company’s role in the world food and agriculture system as well as pressing issues in the U.S. during a Wednesday appearance before the Economic Club of Minnesota.

Sri Zaheer, dean emerita and professor at the University of Minnesota’s Carlson School of Management, posed questions to Sikes, who began his career with Cargill in 1991.

While broadcast media reports coming out of Washington, D.C., detail chaos in the new Trump administration, Sikes exhibited an understated style in calmly explaining the business strategy of the Minnetonka-based agribusiness giant as well as commenting on pending federal actions in a fact-based way without mentioning President Trump’s name.

“We will feed the world because we have amazing farmers around the world and amazing frontline workers,” Sikes said. But he stressed that there are great challenges, and it would be naïve to avoid acknowledging them.

In the early days of the Trump administration, the president imposed tariffs on China but deferred taking action against his North American neighbors in Canada and Mexico.

“Trade disruptions are a problem,” Sikes said. “Tariffs can cause challenges.” Right now, he said, Cargill is weighing its options, because there’s a lack of clarity over whether more tariffs will be imposed by the U.S., how large they could be, and what retaliatory actions might occur.

Describing Cargill as a pro-trade global company, Sikes said leaders need to think through what a tariff conflict could trigger. “Let’s just understand the consequences,” he said. “This might impact food costs here in the U.S.,” he noted. In the recent election cycle, many Americans complained about double-digit percentage increases in what they had to pay for basic food items.

Climate change is another big issue for Cargill, which affects what crops can be successfully grown in different regions of the world, Sikes said. As the world’s population grows and housing and infrastructure expand to accommodate more people, he warned there will be a deficit in water supplies to meet human and business demands. It’s a major issue that’s also paramount for Ecolab CEO Christophe Beck, who is leading his company’s efforts to help clients reuse and recycle water.

Cargill had employees in Ukraine when Russia invaded the country three years ago, and Sikes said Cargill workers remain in Ukraine.

“We have a port there,” Sikes said. “We’ve got an animal nutrition business.”

Like others living in Ukraine, the Cargill employees have been forced to adapt to wartime conditions. Air raid sirens are common. “They have about 15 to 20 minutes to get in that bunker,” Sikes said. “That’s the reality of the world they live in.” He described those Cargill employees as “resilient and amazing” in their ability to persevere.

“I can’t predict what the outcome of the war is going to be,” he said, but Cargill intends to stay in Ukraine. “We don’t leave countries easily,” he said.

On the home front, Sikes expressed concerns about the aging of the farmer population and the shortage of housing and other needs for farm-processing workers.

The 2022 Census of Agriculture reported that the average age of all U.S. farm producers was 58.1 years old.

While technology has greatly enhanced farming practices, Sikes said that he worries about attracting the next generation of farmers because of the swings in farm income. He acknowledged that it’s less risky from an income standpoint for a young person to get a college education, secure a job in a major city, and build a career. “There’s work to be done” in ensuring more young people go into farming, he said.

Cargill operates beef-processing facilities around the United States, including in Fort Morgan, Colorado. Sikes noted that Cargill has gotten directly involved in Fort Morgan in building housing for workers. In 2024, the local newspaper reported on the groundbreaking for a $40 million housing development.

“It’s important that we have vibrant communities,” Sikes said. “It’s access to good health care, access to child care. It’s the amenities that you all want.”