Posted on 08/08/2018 8:58:59 AM PDT by SeekAndFind
President Donald Trump is clearly concerned about the plight of American farmers. He pushed the Department of Agriculture to make available up to $12 billion of temporary relief to those farms caught in the middle of his tariff war – starting this Labor Day.
It’s laudable that he wants to address this problem, but let’s remember that it was a problem of his own creation.
America is a breadbasket to much of the world because of our exceptional farmland. We have about two-and-a-half times as much arable land as does China, for instance, with about the same landmass.
That means exports are going to be a big part of what American farmers produce. And lo, fully 20 percent of farm revenues are from produce sales in foreign markets.
So when President Trump started imposing steel and aluminum tariffs on other countries, what was the literal low-lying fruit that those governments targeted for retaliatory tariffs? That’s right, American produce.
Farmers have contracts in foreign markets that were disrupted by this back-and-forth trade-warring. Many can't afford to fully harvest their produce this year and are having a hard time selling what crops they do have. In some sad cases, crops simply rot in the fields.
It makes sense that our government would compensate them for this loss, but the thing that farmers want long-term is not compensation but contracts via open, stable markets – the kind that the president is doing so much to disrupt
President Donald Trump is clearly concerned about the plight of American farmers. He pushed the Department of Agriculture to make available up to $12 billion of temporary relief to those farms caught in the middle of his tariff war – starting this Labor Day.
It’s laudable that he wants to address this problem, but let’s remember that it was a problem of his own creation.
America is a breadbasket to much of the world because of our exceptional farmland. We have about two-and-a-half times as much arable land as does China, for instance, with about the same landmass.
That means exports are going to be a big part of what American farmers produce. And lo, fully 20 percent of farm revenues are from produce sales in foreign markets.
So when President Trump started imposing steel and aluminum tariffs on other countries, what was the literal low-lying fruit that those governments targeted for retaliatory tariffs? That’s right, American produce.
Farmers have contracts in foreign markets that were disrupted by this back-and-forth trade-warring. Many can't afford to fully harvest their produce this year and are having a hard time selling what crops they do have. In some sad cases, crops simply rot in the fields.
It makes sense that our government would compensate them for this loss, but the thing that farmers want long-term is not compensation but contracts via open, stable markets – the kind that the president is doing so much to disrupt
Trade-warring and the retaliatory tariffs that those conflicts produce do not have a good effect on American produce and related industries. Just in recent days, we’ve seen reports that wheat farmers, hog farmers, soybean farmers, almond farmers, beer brewers, lobstermen, dock workers, and so many others are being affected.
The good news is that most of the damage isn’t permanent. The broader economy is booming. If President Trump reverses course and markets open up again, many of the job losses that have already occurred or are imminent can be reversed. The damage can be undone or mitigated.
But if we have to go through another year of this, temporary farm aid simply will not cut it. Much farmland will be turned over to development or be reclaimed by nature. What crops are left will rot in even greater numbers and the rest of the world will find a way to replace American produce in their markets.
Fake news. Our farmers already face stiff tariffs in foreign markets.
Because thats what has been found right regular in those cheeses imported from overseas.
Most of that S(*t is coming from Belgium and France.
They have found hair-a common thing, Manure, sand, etc, in it. And depending which country, they have found illegal drugs within the shipping cases.
Why, I wonder, does this Einstein think Trump is doing this in the first place?
No mention of this at all, not even to dismiss it.
The more I think about it, that’s just a great post. Just wanted you to know that.
Why can’t “displaced” farmers retrain to be software engineers and doctors like the rest of us were told 25 years ago when all of this offshoring and H-1B’ing started? What are they snow flakes?
Great post.
FYI folks, I’m a registered investment advisor that works as an independent. I use a clearing firm that is used by generally older and successful professionals.
A recent survey of us by our clearing firm indicated that out of 600 advisors, 60% responded that our clients are very satisfied or better about the current economy.
Only 20% of advisors say that the majority of their clients right now are concerned/worried.
Glad you folks liked it...I live in a blue state, so the only time I get to air my views on Leftists is on FR!
Thank Goodness for FR and Jim Rob!
THAT is interesting. Good stuff.
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