With commodity prices dropping and farm income projected to plummet, America’s farmers are growing increasingly anxious over the lack of specifics about how much money they’re going to get, and when they’re going to get it, from President Trump’s $12-billion bailout, reports The Wall Street Journal.
The slump in commodity prices that has accompanied the ongoing tit-for-tat trade war has sapped the farm economy this summer and poses financial risks going into the fall, said Federal Reserve banks in Chicago and Kansas City on Thursday.
The smallest fruit and vegetable growers will pay comparatively more than big operators to comply with the so-called Produce Rule from the FDA — as much as 6.8 percent of their sales compared with less than 1 percent for big farmers, said three USDA economists on Wednesday.
Midwestern farmers will likely need large reductions in rental rates on cropland in 2019 to have a chance of making money on corn or soybeans, said economist Gary Schnitkey of the University of Illinois.
When farm bill negotiators get down to business, the 47 House "conferees" will face an unusually big-caliber Senate team, with Majority Leader Mitch McConnell as one of its members, a rare role for the leader. Senate Agriculture Committee leaders, in cheering the formal appointment of their nine negotiators, used "bipartisan" to describe their approach and take a swipe at the Republican-written House farm bill and its proposal to require more people to work 20 hours a week to qualify for food stamps.
President Carter imposed the 1980 Soviet grain embargo to punish the Soviet Union for its invasion of Afghanistan, an inexact analogue for the Sino-U.S. trade war that started in April. All the same, an analysis of the embargo suggests the greatest damage to the U.S. farm sector may be a diminished role in the world market over the long run rather than a short-term loss of exports, write four university economists.
For Iowa farmer John Heisdorffer, the math is brutal in the U.S.-China tariff war: "You tax soybeans at 25 percent and you have serious damage to U.S. farmers." China, the No. 1 customer for U.S. farm exports, canceled purchases of nearly $140 million worth of U.S. soybeans just before the two countries imposed tit-for-tat tariffs on each other's products. Iowa Sen. Joni Ernst said on Sunday the Trump administration was working on "a number of new free-trade agreements," but China "will be a much longer haul."
With a trade war looming, commodity prices swooning, and the dairy industry in full-blown crisis, a growing number of American farmers are embracing a controversial set of farm policies that would manage the country’s commodity production and stabilize crop prices. No paywall
USDA announced Friday that it will likely establish a Federal Milk Marketing Order for the state of California. The agency will have a referendum for California dairy producers from April 2 to May 5, during which two-thirds of producers have to vote in favor of the FMMO for it to become official.
A growing number of farmers and rural advocates say President Trump's trade and rural infrastructure proposals would further damage the struggling farm economy, despite his vow to boost rural America through renewed investment.