agricultural trade
‘Tough year,’ says Perdue as USDA boosts trade-war payments to $14.5 billion
At the same time he saluted the de-escalation of the Sino-U.S. trade war, Agriculture Secretary Sonny Perdue announced on Monday the release of $3.6 billion in trade-war payments to farmers and ranchers. The money will raise the total for Trump tariff payments to producers to mitigate the impact of retaliatory tariffs on 2019 production to $14.5 billion.
UK’s Johnson opens door to GMO foods from the U.S., as he seeks trade deal
Trump speech to include next steps on China
In his State of the Union speech on Tuesday, President Trump will provide details on further steps in U.S.-China trade relations, says a senior administration official. The nations signed a "phase one" agreement to de-escalate the trade war on Jan. 15 and Trump indicated "phase two" negotiations would begin soon, although no date has been announced.
Assessing the 2020 candidates on trade, from Trump’s unilateralism to ‘insular’ Warren and Sanders
President Trump employs a policy of “aggressive unilateralism” that views agriculture’s trade war losses as collateral damage that can be mitigated by a multibillion-dollar bailout, say the authors of a paper on the 2020 presidential race. The paper says Michael Bloomberg is “perhaps the strongest supporter of free trade among the various Democratic candidates” while Sens. Bernie Sanders and Elizabeth Warren “are the most protectionist.”
As Trump takes victory lap, Canada begins USMCA approval
President Trump led a 37-minute celebration of the new NAFTA on Wednesday, signing the United States-Mexico-Canada Agreement on the White House lawn during a ceremony packed with laudatory descriptions of the “very, very special” tri-national free trade agreement.
Will total U.S. ag exports rise if China buys more?
Without a doubt, the best outcome from the "phase one" agreement with China "is the possibility of U.S. exports to China returning to pre-trade war levels," says economist Dave Widmar. But it's not clear how larger sales to China would affect overall U.S. ag exports, which are forecast at $139 billion this year and have varied from a low of roughly $130 billion to a record-high $152 billion over the past several years.
More trade-war payments ‘coming very quickly,’ Trump tells farmers
In his third appearance in three years before the largest U.S. farm group, President Trump told cheering farmers that they will get a final round of $3.6 billion in trade war payments despite trade deals intended to spur money-making ag exports. Trump pointed to an upturn in farm income, aided greatly by federal subsidies in 2018 and 2019, and predicted on Sunday, "the big stuff is yet to come."
U.S. and China to ease, but not end, trade war next week
President Trump says he and Chinese officials will sign a "phase one" trade agreement at the White House on Jan. 15 that will de-escalate the Sino-U.S. tariff war that began in earnest in mid-2018. The agreement obligates China to buy up to $50 billion a year in U.S. farm exports, more than four times the sales level forecast for this year, according to U.S. officials, but details have not been released.
Brazil says Trump changed his mind on steel and aluminum tariffs
Three weeks after he slammed Brazil and Argentina for actions "not good for our farmers," President Trump reversed his decision to impose high tariffs on steel and aluminum imported from the South American nations, said Brazilian President Jair Bolsonaro on social media over the weekend. "The relationship between the United States and Brazil has never been Stronger!" tweeted Trump on the same day.
Farm support for Trump is highest ever ahead of impeachment
On the same day that President Trump praised soon-to-be Republican Rep. Jeff Van Drew, a straw poll of farmers gave Trump an approval rating of 82 percent, his highest tally yet.
Lighthizer seeks to reassure Mexico on USMCA deal
With the "new NAFTA" nearing a House vote, U.S. trade representative Robert Lighthizer assured Mexico that disputes over labor provisions of the trade agreement will be resolved by independent panels. Mexico was suspicious that a U.S. proposal to post five Labor Department attaches in Mexico City was an underhanded way of bringing foreign labor inspectors into the country.
Painful ag restructuring if Sino-U.S. trade war persists
If there is no near-term resolution of the Sino-U.S. trade war, the Trump administration will need to spend billions of dollars in additional trade war payments to farmers and ranchers or watch farm income sink, said two economists on Monday. Either way, there would be painful restructuring in the sector, which has collected more than $10 billion in Trump tariff payments this year.
Japan approves ag and digital trade deal with U.S.
Beginning on Jan. 1, Japan will lower or eliminate tariffs on $7.2 billion worth of U.S. farm exports under a “mini” trade pact that received final approval in Japan’s parliament on Wednesday.
Trump slaps tariffs on Brazil, Argentina metals – and French champagne
Brazil and Argentina are taking actions that are "not good for our farmers," said President Trump on Monday, announcing high tariffs on steel and aluminum imports from the South American nations. Trump, who announced the tariffs on social media, said the weakening Brazilian real and Argentina peso adversely affects U.S. manufacturing and agricultural exports, making American-made goods more expensive.
Farm income is highest in six years, thanks to Trump’s trade-war bailout
Fueled by $14.5 billion in Trump tariff payments, U.S. net farm income will climb to its highest total since the commodity boom crested in 2013 and a dramatic rebound from the plunge that accompanied its collapse, the USDA estimated. When crop insurance indemnities are added to "direct farm program payments," a category that includes trade war aid, land stewardship payments and traditional crop supports, the government will provide an unusually high 31 percent of farm income this year.
After ups and downs, farm groups look for finality on trade
As lawmakers become more vocal in criticizing Trump tariff payments, U.S. farm groups increasingly are quiet on trade issues. The reasons range from weariness to uncertainty over what's to come, whether it's the Sino-U.S. trade war, congressional approval of the USMCA with Canada and Mexico, or implementation of new ag trade rules with Japan, say analysts and farm group officials.
USDA releases additional $3.6 billion in Trump tariff payments
With the Sino-U.S. trade war unresolved, the Trump administration released $3.625 billion in trade-war payments to farmers and ranchers on Friday to offset losses on 2019 production. Payments will begin this week and Agriculture Secretary Sonny Perdue said they "will give farmers, who have had a tough year due to unfair trade retaliation and natural disasters, much needed funds in time for Thanksgiving.”
Short on cash, some farmers will sell assets during winter
Low commodity prices and high costs are tightening the credit squeeze on the farm sector, with little expectation of improvement in the near term, according to ag bankers in the Midwest and Plains. Some farmers and ranchers will liquidate assets during the winter to stay afloat, and some highly leveraged operators will be forced out of business, they said.
Reduced interest overseas in U.S. soybeans
The new soybean marketing year opens on Saturday, and early orders for the U.S. crop are the smallest in years, says a research brief from rural lender CoBank. Global demand is down in the face of the strong dollar, slow economic growth, and uncertainties about U.S. trade policy in an election year.