Posted on 05/18/2019 4:38:33 AM PDT by reaganaut1
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Atchison County, my small farming community in northwest Missouri, is home to about 5,000 people. One hundred thousand acres of soybeans are planted here each year. The drop in soybean prices has meant a loss of around $100 in potential income on each of those acres. Atchison County farmers will be looking at a decline of $10 million in gross income this year, or about $2,000 per capita. We won’t be buying many Whirlpool washers.
Supporters of the tariffs begin each conversation with a litany of Chinese wrongs. They say China ignores the rules governing international trade and is at best a geopolitical rival and maybe something far worse. It’s true that the U.S. response to China’s bad behavior has been inadequate. Yet rarely does the conversation move to Canada, Mexico or South Korea, other formerly reliable customers for U.S. agricultural products that have also become targets in Mr. Trump’s world-wide trade war.
Mr. Cordes, a lifelong Republican, is worried about China as well. But he’s also worried about having to take out a mortgage on his farm so he can plant this year’s crop and feed his family. The economic reality has dimmed his ardor for trade wars.
I’d like to stop China’s abuses too, but I’m more concerned with my farm’s financial future. My family produces 150,000 bushels of soybeans a year, but with the price bottoming out, we expect to take a $250,000 hit to our gross income in 2019. Farmers are patriotic. We love our country and don’t want to see it cheated. But we’ve given about as much to this battle as we are able.
Tariffs are a tax on U.S. consumers. We already tax ourselves to belong to international organizations that are supposed to enforce trading rules
(Excerpt) Read more at wsj.com ...
Farmers are the moat pampered 4% of the workforce you can find. Tractor monkeys are so special.
“Tariffs are a tax on U.S. consumers.
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There is the lie. Tariffs are a barrier to the products affected. Consumers will buy elsewhere.”
OR
Consumers will consume something else...I. E. If beef expensive? Buy Pork? etc etc etc
Why doesn’t the WSJ praise the revenue aspect of the tariffs? $150B/yr of NEW revenue will come into the US Treasury, that is significant. It helps to decrease the budget deficit in a major way.
November and January futures are basically steady. Brazil has had a smaller than anticipated soybean crop.
Interesting.
I was thinking more of an existing contract for deliveries over time at a contracturally fixed price. Is the Chinese buyer, perhaps the government, still required to purchase at a tariffed price.
Which raises the question, can the Chinese government waive the tariff on purchases it makes ?
Likely the question of Chinese tariffs being applied to existing contracts would be up to the Chinese government, but my instinct would be that they would not, at least officially.
With China, I’m not sure there’s a way to really know what it’s doing internally.
Yes...... interesting isn’t it.
The soy bean guys might not actually lose any sales to China
Worldwide demand is what it is. The commodity will be sold one place or someplace else. Traders with sweetheart deals with China are driving the hysteria.
Note that corn and DDGS from ethanol production can take the place of a lot of soybeans as animal feed, so China may buy more corn while buying less beans.
It’s amazing how tariffs against these other nations that have butt raped us for decades are always bad for us somehow???
The media wouldn’t be biased would it????
Coastal elitist should view Greg Hunters weekly update for May 17 2019
https://usawatchdog.com/traitors-going-to-jail-china-trade-war-economic-update/
ff to 23:35.
The Mississippi river floodplain remains covered in water.
Hundreds of acres are not seeded/planted.
Pray the water drains off the land!
“Seed has been in the ground for weeks now.”
Don’t know where you live, but in Illinois, due to the cold & wet Spring the % corn and soybeans planted is near 0. Normal for corn in mid-May is 100% and soybeans near that.
“the government has promised to subsidize their soybean crops to offset the loss from tariffs.”
Don’t know how much of that is real. Its the same government that made the Indian treaties.
Tell the farmers to call a Wambulance.
Grow extra Ethanol instead.
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