Trade tensions between the U.S. and China are flaring once again, and American farmers continue to bear the brunt of the implications.
In response to President Trump recently announcing 10% tariffs on $300 billion in Chinese goods, China allowed the yuan to weaken and suspended purchases U.S. agricultural products.
“The Chinese market has a large capacity and the prospect of importing high-quality U.S. agricultural products is bright," state-owned media Xinhua said on Monday. "However, we hope the U.S. will conscientiously implement the consensus reached at the [G-20 summit in Osaka, Japan] between the heads of the two countries, and implement the commitments to create the necessary conditions for cooperation in the agricultural fields between the two countries.”
America farmers were dismayed by the developments.
“This is just another nail in the coffin,” Tyler Stafslien, a North Dakota-based soybean farmer, told Yahoo Finance. “To see this thing only seems to be getting worse rather than better is very concerning, and the American taxpayers may have to foot another round of funding if this keeps up — or we could see a ton of farmers’ loss throughout this nation.”
American Farm Bureau Federation President Zippy Duvall said that the pain extended across the country.
“China’s announcement that it will not buy any agricultural products from the United States is a body blow to thousands of farmers and ranchers who are already struggling to get by,” Duvall stated.
‘Tariff policies have been doing financial harm to farmers’
Although farmers have collectively been receiving billions in market facilitation payments from the USDA, Stafslien sees these payments as “band-aids.”
The Trump administration announced in July that it would be providing an additional $16 billion in aid to farmers affected by the trade war.
“It’s certainly proof that the administration recognizes their tariff policies have been doing financial harm to farmers and rural America,” Stafslien said. (...)
Back in May 2019, U.S soybean prices reached its lowest level in a decade, dipping below $8 a bushel for the first time since 2008. But for farmers to make some kind of profit, they have still sold their crops despite the record-low prices.
“At some point, you have to sell, because we need some cash flow and when you’re selling at a loss, it’s just an ugly situation to be in,” Ziesch said. “If the price of soybeans is low because of tariffs, there’s not much I can do about it at some point,” Stafslien said. “You have to have cash flow just like any business. You may be selling at a loss just to rob Peter to pay Paul.”
‘We had developed a market with China’
by Adriana Belmonte, Yahoo News | Read more:
In response to President Trump recently announcing 10% tariffs on $300 billion in Chinese goods, China allowed the yuan to weaken and suspended purchases U.S. agricultural products.
“The Chinese market has a large capacity and the prospect of importing high-quality U.S. agricultural products is bright," state-owned media Xinhua said on Monday. "However, we hope the U.S. will conscientiously implement the consensus reached at the [G-20 summit in Osaka, Japan] between the heads of the two countries, and implement the commitments to create the necessary conditions for cooperation in the agricultural fields between the two countries.”America farmers were dismayed by the developments.
“This is just another nail in the coffin,” Tyler Stafslien, a North Dakota-based soybean farmer, told Yahoo Finance. “To see this thing only seems to be getting worse rather than better is very concerning, and the American taxpayers may have to foot another round of funding if this keeps up — or we could see a ton of farmers’ loss throughout this nation.”
American Farm Bureau Federation President Zippy Duvall said that the pain extended across the country.
“China’s announcement that it will not buy any agricultural products from the United States is a body blow to thousands of farmers and ranchers who are already struggling to get by,” Duvall stated.
‘Tariff policies have been doing financial harm to farmers’
Although farmers have collectively been receiving billions in market facilitation payments from the USDA, Stafslien sees these payments as “band-aids.”
The Trump administration announced in July that it would be providing an additional $16 billion in aid to farmers affected by the trade war.
“It’s certainly proof that the administration recognizes their tariff policies have been doing financial harm to farmers and rural America,” Stafslien said. (...)
Back in May 2019, U.S soybean prices reached its lowest level in a decade, dipping below $8 a bushel for the first time since 2008. But for farmers to make some kind of profit, they have still sold their crops despite the record-low prices.
“At some point, you have to sell, because we need some cash flow and when you’re selling at a loss, it’s just an ugly situation to be in,” Ziesch said. “If the price of soybeans is low because of tariffs, there’s not much I can do about it at some point,” Stafslien said. “You have to have cash flow just like any business. You may be selling at a loss just to rob Peter to pay Paul.”
‘We had developed a market with China’
Over the last year, as a means to finding a new source for soybeans, China has turned to countries like Argentina and Brazil. This has left American soybean farmers in the dust, so to speak. The S&P Global reported that Argentine and Brazilian soybean exports are projected to increase over the next marketing year, while U.S. sales are expected to fall.
Stafslien expressed his frustration at the inability for the two countries to reach a deal, particularly with the Trump administration, and the lost markets. (...)
Bob Kuylen, a wheat farmer, expressed a similar sentiment, recently telling Yahoo Finance: “This trade thing is what’s brought on by the president, and it’s really frustrating because he took away all of our markets.”
“All these countries went to different countries to get their grain,” he added. “How are we going to get the relations back with them to buy our grain again and be our customers?”
Stafslien expressed his frustration at the inability for the two countries to reach a deal, particularly with the Trump administration, and the lost markets. (...)
Bob Kuylen, a wheat farmer, expressed a similar sentiment, recently telling Yahoo Finance: “This trade thing is what’s brought on by the president, and it’s really frustrating because he took away all of our markets.”
“All these countries went to different countries to get their grain,” he added. “How are we going to get the relations back with them to buy our grain again and be our customers?”
Image:Joshua Lott, Reuters
[ed. $28 billion and counting. See also: 'Is this sustainable?’: Farmers say bailouts aren’t enough in Trump’s trade war (Yahoo News) and Trump Hints At Third Farm Bailout (ZeroHedge). But there's more! See also: Trump trade-war bailout flows to richest farmers; poor, black farmers left to struggle (Salon). Of course.]
