Posted on 07/14/2017 10:50:21 AM PDT by jjotto
DES MOINES, Iowa —
Iowa farmers received a major boost Thursday after a Chinese delegation in Des Moines signed commitments to purchase nearly all of Iowa’s soybeans.
The $4.5 billion deal to buy 460 million bushels of soybeans comes a week before Gov. Kim Reynolds is expected to lead an agricultural trade mission to China and brings tremendous value to the Iowa economy. Advertisement
“As an Iowa farmer, this is huge,” said April Hemmes, a farmer who owns a 1,000-acre farm near Hampton in rural Franklin County. “They basically bought the entire production that we have in the state of Iowa.”
Listening to translators through earbuds, agricultural leaders and exporters gathered at the Embassy Club in downtown Des Moines for the signing ceremony hosted by the United States Soybean Export Council.
“It was the request of the Chinese to come to Des Moines,” said Jim Sutter, U.S. Soybean Export Council CEO. “They have fond memories of (President Xi Jinping’s) visit and his time here, and it’s become legendary in China.”
The deal includes purchasing nearly all of Iowa's soybean production of 12.53 million metric tons, which is “a big deal that they would, in one day, sign 10 percent of total U.S. crop purchases.”
“It provides a great base for U.S. demand for soybeans,” Sutter said. “It’s a huge market and huge opportunities for farmers of Iowa.”
Nearly 60 percent of soybeans grown in the United States are exported to other countries, and China remains the No. 1 customer.
The Chinese delegation from seven companies also signed contracts for sorghum, pork and beef.
Winning?
Winning.
The Trump/Branstad effect.
I’m cool with this as long as these farmers understand that in the event of a trade war these contracts have the potential to be cancelled. These farmers should know what they’re getting into with a regime like China...
For comparison, total US soybean production in 2016 was about 4.3+ billion bushels, with Iowa producing 570+ million bushels.
Sheesh, you must think farmers are idiots.
Ag production can vary more than this ten percent yearly due to weather vagaries. This is a big deal, but not much more risky than anything in agriculture.
Perhaps they will switch to soybeans and syop producing so much corn. I’m thinking less corn, less ethanol. It can help change the gasoline blending requirements and we all win.
heh heh
Fortunately, something like 98% of soybeans feed animals, not people.
Man-boobed, leftist, tofu-munching beta males. Absolutely nothing different from what we have here.
Huge demand for soybeans. No worries.
Now if only we could get farmers out of the ethanol business. Surely there are other uses for the corn that is used there, or at least the farmland. We should not be using food for fuel. We have plenty of gas and oil for our vehicles.
The widening of the Panama Canal makes our agricultural exports more cost effective, so expect more deals like this.
President Xi: “Is this Heaven?”
President Trump: “No, it’s Iowa”.
President Xi: “Could have sworn it was Heaven”.
(Field of Dreams)
This is very, very big news.
WILL FARMERS SELLOUT AMERICA FOR $$$?
Farming the World: China’s Epic Race to Avoid a Food Crisis
https://www.bloomberg.com/graphics/2017-feeding-china/
Californians, Chinese Scooping Up Farmland in Washington State
http://www.nbcnews.com/business/real-estate/californians-chinese-scooping-farmland-washington-state-n401841
Saudi Arabia buying up farmland in US Southwest
http://www.cnbc.com/2016/01/15/saudi-arabia-buying-up-farmland-in-us-southwest.html
“Now if only we could get farmers out of the ethanol business.”
You said it!
Putting corn in the gas tank is foolish; how it became a common practice only demonstrates how ‘broken’ our government is.
Not to mention it hurts the engine and reduces power (I’m told).
I produced 1000 bu last year to contribute to the effort.
Each step towards 4.3 billion bushels begins with but a tiny seed planted millions of times, good weather, adequate sunshine and rain, and a farmer who tends it all.
Yep, ethanol for fuel is one of the wasteful ideas ever propagated.
Not really, I am just envisioning the howls of protest that we’re stealing food off their kid’s plate, when in reality this was always going to be a risky transaction due to the nature of the purchasing party.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.