Trade

U.S. farmers compete to sell their goods, like these soybeans in Nebraska, on a world market.
Grant Gerlock / Harvest Public Media file photo

The trade war has come home to roost among U.S. farmers and ranchers whose livelihoods are targeted by tariffs from China, Mexico and Canada. The U.S. Department of Agriculture did something about it Tuesday, announcing it'll spend up to $12 billion in aid, including direct payments to growers. 

The Canadian consul general to the Midwest is urging Missouri farmers to voice their support for renegotiating the North American Free-Trade Agreement, or NAFTA.

Frank Morris / Harvest Public Media

The corn and soybeans growing in Glenn Brunkow’s fields in the rolling Flint Hills north of Wamego, Kansas, got some much needed rain recently and look healthy.

Brunkow has reason to expect a good harvest, but the way things are looking globally, he’ll lose money on the crop. Trade disputes with China, Mexico and Canada threaten to slash U.S. food exports by billions. About half the soybean crop goes overseas, most of that to China — and since mid-April, soybean prices have plunged about 20 percent and corn about 15 percent.

The order came in April. China's government instructed farmers in the country's northeastern breadbasket region to grow more soybeans, calling it "a political priority."

But soybean fields lay empty in the village of Sandaogou, which means "Three Ditches," in Liaoning province. It has been a dry spring.

"We've had a drought this year, so we planted soybeans late. The seedlings should be out by now. We need more rain," says farmer Liu, who only gives her surname for fear of trouble with local authorities. Soy, after all, has become "political."

Two of the nation’s most influential players in agriculture policy, at a meeting in the heart of the country’s Grain Belt on Wednesday, tried to ease worries about the pending farm bill and a budding trade war with China.

Farmers Milking For What It's Worth (Not Much), Unsure What Comes Next

May 17, 2018
Nicole Erwin / Ohio Valley ReSource

Dairy farmer Gary Rock sits in his milking parlor, overlooking what is left of his 95-cow operation in LaRue County, Kentucky.

“Three hundred years of history is something that a lot of people in our country cannot even talk about,” Rock said. That’s how long the farm has been in his family.

Grant Gerlock / Harvest Public Media file photo

Updated April 4 to clarify the export percentage — China matters to the U.S. pork industry, as more than a quarter of all hogs raised here are shipped there. So, China’s decision to up its tariffs on 128 U.S. products, pork included, worried producers and rippled through the stock market.

Grant Gerlock / Harvest Public Media file photo

President Donald Trump signed the $1.3 trillion spending bill that’ll keep the federal government running, and will fix for a troublesome provision for some grain businesses.

Passed in last year’s tax overhaul, the provision allows farmers to deduct up to 20 percent of their earnings from selling crops — but only to cooperatives. That threatens businesses that aren’t co-ops but also buy and sell commodities like corn, soybeans and wheat, including large companies like Cargill and Bunge to small, local grain elevators.

David Barry / NET Nebraska

The U.S., Canada and Mexico wrapped up the latest round of negotiations earlier this month over NAFTA, the North American Free Trade Agreement.

President Donald Trump has threatened to terminate the trade pact, which he continues to call a bad deal for the U.S. But NAFTA has helped grow the beef industry beyond the U.S. borders, so while some worry about the Trump administration’s wavering commitment to NAFTA, others want more protections.

Amy Mayer / Harvest Public Media file photo

When President Donald Trump follows through on his plan to tax imported steel and aluminum, American farmers will get less money for some crops and pay more for machinery.

Farm groups say their members worry the countries targeted by the tariffs (the list of which has not been finalized by the Trump administration) will tax farm products. The European Union already has threatened imports of corn, rice, cranberries, peanut butter, kidney beans, orange juice and even bourbon, which is usually made from corn.

There is a slight silver lining for consumers, however, because prices of those products may drop in the U.S.

Pages