chairman Donald Trump American soybean farmers are planning an important support package to help them avoid boycott of American beans in response to their trade war, even the President says that he is still demanding soybean deal Beijing,
But the farmers are worried that the time is quickly running out to reach a deal on time to sell any crop of this year to their largest customer.
Treasury Secretary Scott betting On Thursday, CNBC was said that the public may expect news of “adequate support for our farmers, especially Soybean farmers,” on Tuesday.
The details of the aid package are unknown, but it will come as the world’s two largest economies, unable to reach a business deal and China The purchase of US beans has stopped. China, the largest foreign buyer of American soybeans for many years, bought American Beans for the last time and no one bought for the crop season, which began in September.
Trump wrote in a true social post on Wednesday, “Soybean farmers of our country are hurt because China is only for the reasons for ‘conversation’, not to buy.” “We have earned so much money on the tariff, that we are going to take a small part of that money, and will help our farmers.”
Trump wrote, “I will meet with Chinese President Xi in four weeks, and soybean will be a major topic of discussion.”
Soybean which is largely imported for oil extraction and animal feed, is an important crop for American agriculture as they are top American food exports, accounting for about 14% of all agricultural goods sent abroad and China is buying 25% of all American soybeans in recent years.
According to the American Soybean Association, American farmers increased a $ 60.7 billion soybean or approximately 4.3 billion in the marketing year. Just more than half of it was exported. Illinois top soybean is increasing state, but Iowa, Nebraska and Minnesota are also large manufacturers.
Trump and Chinese President Xi Jinping are expected to meet the annual summit of the Asia Pacific Economic Cooperation Group to be held in South Korea in late October.
In Trump’s first trade war with China, he gave more than $ 22 billion in assistance to American farmers in 2019 and about $ 46 billion in 2020, although the later Kovid epidemic assistance was also involved.
Time is ending
A Kentki farmer Kaleb Ragland, who serves as the chairman of the American Soybean Association, welcomed Trump, accepting the difficulties faced by the farmers. He said that action is required to prevent many farmers from going out of business.
He said that before the trade war, farmers were already taken up with high cost and low crop prices. Then, his biggest customer disappeared.
“It is just unfortunate that we are being used as a bargained chip in this business war that is not of our own work,” Ragland said.
He said that the time is running short for the two governments to make a deal, as China has already ordered soybean from countries like Brazil and countries. Argentina For delivery through December and, if there is no soybean deal soon, China can leave America completely.
“If they get one and two months, they are in new crops soybeans in Brazil and Argentina. And if we are not careful, they are going to bypass us completely.”
The deal is still likely
China slapped 20% of tariffs on US soybean as Trump announced its tariff on the world in spring, making US beans ineffective in price.
Venual tariffs are in response to Trump’s new import taxes on Chinese goods on allegations that have failed to prevent the flow of chemicals used to make Beijing Phentenell and also reduced the entire board “liberation day” tariff of Trump, which has reduced to 10% baseline rate.
Observers say that China may reduce tariffs on American farm goods, the White House should run back to the fertanel-related tariff. This has not happened yet.
The White House said “Fentanile has not been given priority” since this spring, said Sun Yun, director of China program at the Think Tank Stimson Center in Washington. He said that China’s Public Security Minister Wang Ziahong shown in Geneva in May, but did not meet any counterpart to interact with the US.
But there is no time to write the soybean deal yet, he said. “China still needs to do something to show at the leadership meeting in South Korea,” Sun said.
Gabriel Wildau, managing director of Consultancy Tenaneo, said the soybean deal is the “lowest hanging fruit” for both governments.
“China needs legumes, and America is to sell them. It is not anything to move China originally towards American beans and far away from Brazil and Argentina,” Wildau said. “If Washington and Beijing cannot reach a deal on soybean, they do not have high expectations to reach a deal on prickly control issues like export control.”
Argentina is currently a sarcastic subject for American farmers as on September 24, Beijing took advantage of a one -tax holiday in Argentina and ordered Argentina Soybean and Soya Products about 2 million tonnes. Tax holiday came after America’s signal, it would provide a $ 20 billion support package to help stabilize the Latin American country’s economy.
“This situation was angry for many farmers,” Ragland said. “And when I don’t think the specific intention was just to give a large part, give Argentina $ 20 billion so that they can send China soybeans. This was the result. It was a result. And its optics look absolutely terrible.”
Farmers prefer more business with help
If they cannot sell China, government assistance may be necessary to help farmers get this year, but farmers say they will sell their crops in the market.
Iowa farmer Rob Evoldt said, “All farmers are proud of what they do and they do not like handouts. We will make it with our two hands.”
Meanwhile, farmers like the fifth generation Ryan McCanthunus in South-Central Minnesota say they will do everything they can do to survive.
“It certainly tightens the belt, to look at the inputs, look at the previous investments that I made in fertilizer and see if I can spread one or two years of them to reduce the cost, but can maintain the same yield estimates, run the equipment for a long time,” said “McKanthun.”