‘No End in Sight’ for Farmers Feeling Pain of Trump’s Trade War

[ThunderBlade + 231]

American farmers, among Donald Trump’s most loyal supporters, face mounting financial pain from the president’s trade war with China and the growing risk that the damage will outlast the conflict. The standoff with China over trade is compounding the strain of five years of falling commodity prices and losses from spring flooding. And as the dispute drags on, China is forging relationships with competing suppliers and farmers in other countries are reorienting operations to cater to the Chinese markets. President Trump said that he has a plan to protect farmers. Will it work? Not sure... 

[Pavel + 384]

Farmers as a best example of socialism. 15 billion aid now and the previous 12 billion received - so a total of 27 billion in less than 8 months.

[francoba + 93]

2 minutes ago, Pavel said:

Farmers as a best example of socialism. 15 billion aid now and the previous 12 billion received - so a total of 27 billion in less than 8 months.

new farmer bailout plan...

[pinto + 293]

It's hard to to explain that one a market has been destroyed, and another market created... It's very difficult to recreate the former once the latter is established. In the short term, money can help ... Long-term, it's called a bankrup

[50 shades of black + 254]

The thruth: "China’s latest tariff hike on $60 billion worth of U.S. goods hits farmers at “every single angle,” according to an economist at the American Farm Bureau Federation. “The retaliatory tariffs placed on U.S. farmers from China are a net negative on the industry,” Michael Nepveux told CNBC’s “Squawk Box Asia” on Tuesday"

[Ward Smith + 6,615]

The only crop the Chinese care about is soybeans. They like their tofu, soy sauce and soy milk. 

While there are other purveyors from different countries, it's easiest overall to buy American. We're dumb enough to finance the sale while the Brazilians want cash up front. 

[esgeo + 54]

10 minutes ago, Ward Smith said:

The only crop the Chinese care about is soybeans. They like their tofu, soy sauce and soy milk. 

While there are other purveyors from different countries, it's easiest overall to buy American. We're dumb enough to finance the sale while the Brazilians want cash up front. 

https://ucanr.edu/blogs/blogcore/postdetail.cfm?postnum=29204

 

Actually, there is a substantial, growing Chinese market for feed in the form of alfalfa and hay. It's kind of a tricky situation in California, as ag uses of water (for exports and domestic uses) are going to be competing with urban development needs over the next several decades. 

[Ward Smith + 6,615]

To be perfectly clear, there are virtually zero farmers who sell directly to China. Farmers sell to silo operators, who then sell to aggregators who then sell to whomever. Whether or not we sell to China has a macroeconomic impact but farmers exist in the microeconomics realm. There's a small town near me that has more millionaires per capita than anywhere else, almost all of them farmers. They're extremely savvy about playing grain futures. Joe Six-pack might not be the farmer you're thinking of when you think American farmer. That's before we get to corporate farming…

[RuudinFrance + 25]

8 hours ago, Ward Smith said:

The only crop the Chinese care about is soybeans. They like their tofu, soy sauce and soy milk. 

While there are other purveyors from different countries, it's easiest overall to buy American. We're dumb enough to finance the sale while the Brazilians want cash up front. 

Sure it's easiest to buy American. Until it is no longer 🤡

Have fun.

 

[RuudinFrance + 25]

49 minutes ago, Ward Smith said:

To be perfectly clear, there are virtually zero farmers who sell directly to China. Farmers sell to silo operators, who then sell to aggregators who then sell to whomever. Whether or not we sell to China has a macroeconomic impact but farmers exist in the microeconomics realm. There's a small town near me that has more millionaires per capita than anywhere else, almost all of them farmers. They're extremely savvy about playing grain futures. Joe Six-pack might not be the farmer you're thinking of when you think American farmer. That's before we get to corporate farming…

And when the aggregators (sic) lose their markets, they won't buy from the silo operators and when the silos are full .....?

Yup, perfectly clear.

Have fun.

 

[ronwagn + 6,290]

13 hours ago, ThunderBlade said:

American farmers, among Donald Trump’s most loyal supporters, face mounting financial pain from the president’s trade war with China and the growing risk that the damage will outlast the conflict. The standoff with China over trade is compounding the strain of five years of falling commodity prices and losses from spring flooding. And as the dispute drags on, China is forging relationships with competing suppliers and farmers in other countries are reorienting operations to cater to the Chinese markets. President Trump said that he has a plan to protect farmers. Will it work? Not sure... 

Due to the flooding and farmers, that were not flooded, still not able to work in the mushy mud, prices are on their way up. If rain continues the prices will continue. We are the main corn (maize) supplier to the world. There is little competition in corn, to my knowledge. Soybeans are another story. Farming is like any industry, it needs to compete with the market. There is no guarantee that anyone can sell ANY product whatsoever. Most family farmers hold down full time jobs elsewhere. My dentist is a family farmer! They can always choose to sell their farm and make a fortune, unless they are already deeply in debt. You seldom see farmland for sale. Pride and tradition are strong motvators for family farmers though. 

My property is still flooded about 10%. Each step there sinks in about five inches. More than that a couple of inches. I have seen worse flooding but it was shortlived. This is a much longer period of being boggy. I have lived around Decatur, Illinois for 32 years. I spent five of 12 months last year in California and the multi year drought was erased. 

Edited May 15, 2019 by ronwagn
addition

[ronwagn + 6,290]

13 hours ago, Pavel said:

Farmers as a best example of socialism. 15 billion aid now and the previous 12 billion received - so a total of 27 billion in less than 8 months.

Aside from political considerations, we do need to support our most vital industry. 

[ronwagn + 6,290]

10 hours ago, esgeo said:

https://ucanr.edu/blogs/blogcore/postdetail.cfm?postnum=29204

 

Actually, there is a substantial, growing Chinese market for feed in the form of alfalfa and hay. It's kind of a tricky situation in California, as ag uses of water (for exports and domestic uses) are going to be competing with urban development needs over the next several decades. 

California's population growth has slowed way down for several reasons. Mainly big government and big taxes but also overregulation and extremely liberal politics that one third of Californians still detest.