Ag purchases would show good faith by China, says Kudlow

There is no deadline for resolving the Sino-US trade war, said White House economic advisor Larry Kudlow on Tuesday. But he said China ought to purchase U.S. soybeans and wheat as a sign of good faith while negotiations are under way. Kudlow’s comments, made during a CNBC “Capital …

Trump tariff payments may prop up financially weak farms

The past five years, since the collapse of the commodity boom, “has resulted in a massive drain of farm sector liquidity” and working capital is critically low, said economist Brent Gloy on Monday. The new round of up to $14.5 billion in trade mitigation payments promised by …

Some ‘plussing up’ needed before White House seeks USMCA vote

U.S. trade representative Robert Lighthizer said he was in discussions with House Democrats about “plussing up” the new NAFTA and shied away on Tuesday from suggesting when the White House will ask for a vote on it. Senate Finance chairman Chuck Grassley told reporters that he hoped …

Maybe a ‘minimal’ Trump payment on prevented plantings, Perdue says

The USDA will not make Trump tariff payments on farmland that is not planted this year, because it's not allowed by law to do so, said Agriculture Secretary Sonny Perdue on Monday. But there may be a way to provide some assistance to growers from the $14.5 billion in Market Facilitation Program (MFP) funds allotted for this year's crops, Perdue said, ahead of President Trump's visit to Iowa.

Trump tariff payments could triple farm subsidies this year

When Congress passed the 2018 farm policy law, analysts estimated farm subsidies would cost an average $6.1 billion a year. The Trump tariff payments, ordered by the White House to mitigate the impact of trade war, could triple the total for expenditures to farmers this year.

Farmers in Plains lean heavily on Trump tariff payments

Due to the trade war, more than a third of net farm income for Kansas farmers comes from  Trump tariff payments, but that won't make up for lost export sales, said Republican Sen. Jerry Moran on Monday. The second-term Republican was part of a Farm Belt chorus that, after applauding the end of a trade dispute with Canada and Mexico, called for trade deals with China, Japan and the European Union.

Farm groups warn of damage as Trump threatens border closure

On Wednesday, in his latest threat to close the U.S.-Mexico border, President Trump demanded that Congress “immediately eliminate the loopholes at the Border.” The American Farm Bureau Federation asked that agricultural trade be exempted from any restrictions, and the National Farmers Union said a closure would be disastrous.

Senators mull limits on ‘national security’ tariffs

Senate Finance Committee chairman Chuck Grassley has lots of company in considering limits on the president’s power to impose tariffs on national security grounds. In the coming weeks, Grassley expects to introduce a bipartisan bill to reform these so-called Section 232 tariffs.

Brazil agrees to let some wheat enter duty-free, an opening for U.S. grain

Wheat growers declared victory—”a big win”—with Brazil’s agreement on Tuesday to allow duty-free import of wheat grown outside of a South American trading bloc. The so-called tariff-rate quota could result in exports worth more than $100 million a year if U.S. wheat dominates …

With trade war, sorghum stockpile set to hit a 13-year high

A year ago, half of the U.S. sorghum crop was exported. This year, only a quarter of it is headed overseas due to the U.S.-China trade war, which means the sorghum stockpile will double by the time the new crop is ready for harvest this summer. USDA's monthly Grains: World Markets and Trade report says the sorghum inventory will be the largest in 13 years.