Weekend Ag News Update - Dec 2

Soybean Growers Relieved to Hear Positive Trade News from G20

The American Soybean Association (ASA) was pleased to hear positive reports from the G20 Summit Saturday night that President Trump and Chinese President Xi Jinping have potentially agreed to deescalate the current trade friction by not raising tariffs further while negotiations continue. According to a White House statement, China has also agreed to purchase more U.S. agricultural and other products.

John Heisdorffer, a soybean grower from Keota, Iowa, and ASA president said, “This is the first positive news we’ve seen after months of downturned prices and halted shipments. If this suspension of tariff increases leads to a longer-term agreement, it will be extremely positive for the soy industry. We want to begin repairing damage done to our trade relations with China, which has been essential to successful soybean exports for years.”

Under the agreement reached on Saturday, tariffs on $200 billion worth of goods will not increase to 25 percent on January 1 from the current 10 percent level. Details have not been announced regarding the quantity of U.S. goods that China will purchase, but the White House statement indicated that purchases of ag products would begin immediately.

Trump and Xi struck the deal during a dinner Saturday night following the G-20 summit in Buenos Aires, Argentina. The agreement apparently has a moratorium of 90 days for both sides to come to resolution on issues including technology transfer, intellectual property protection, and other concerns.

“During the 90-day negotiating period, ASA hopes to see China reopen its market to significant U.S. soybean imports as a key confidence-building step that will help restore our trade relationship,” Heisdorffer said. “This is an important opportunity to demonstrate positive momentum that will strengthen efforts on both sides to restore economic relations that are mutually beneficial.”



Statement Nebraska Farm Bureau President Steve Nelson Regarding U.S., China Trade Negotiations

“Last night’s announcement that China will begin immediately to purchase more agricultural products from the United States, is welcome news to Nebraska farmers and ranchers.”

“It’s our hope that both countries will continue to work to get a long-term trade agreement in place in the next 90-days to avoid further escalation of retaliatory tariffs that have harmed U.S. agriculture.”



Tariffs Hurt the Heartland Statement on Agreement Delaying January 1st Tariff Increase

Tariffs Hurt the Heartland, the nationwide campaign against tariffs, released the following statement from campaign spokesman and former Congressman Charles Boustany on the announcement to hold off on upcoming tariff increases. Tariffs Hurt the Heartland is the largest campaign against the tariffs and includes over 150 of America's largest trade associations and ag commodity groups.

"Agreeing not to raise tariffs on American businesses, farmers and consumers is an encouraging first step. These tariffs are taxes that Americans pay, and avoiding a massive tax increase on January 1st is welcome news that must be followed up by rolling back the tariffs currently in place. Tonight’s announcement makes clear that the Administration has heard the stories of economic hardship from Americans who have been hurt by tariffs. Our campaign will continue to tell their stories as the Administration enters into this important negotiation period."



Farmers for Free Trade Statement on Announcement to Hold Off on January 1st Tariff Increases

Farmers for Free Trade Executive Director Angela Hofmann released the following statement today on the announced agreement to hold off on tariff increases on January 1st. Hofmann released the statement from the Illinois Farm Bureau Convention where she is talking to farmers and ranchers about the importance of trade and the impacts they have felt from the ongoing trade war.
“Any signal, even if temporary, that this trade war may de-escalate is welcome news for farmers. While farmers are cautiously optimistic about this development, they are also keenly aware that they are still subject to the existing painful retaliatory tariffs and lost markets that have hurt their recently harvested crops and income.”

“American farmers are results oriented and are hopeful that all parties will quickly resolve the trade war so they can regain markets that are decades in the making.

“In the months ahead, Farmers for Free Trade will continue traveling across the country to hear from farmers and to amplify their voices in Washington, D.C. The voices of American farmers have helped to create the pressure needed for any progress in easing trade tensions. Further progress will continue to require their stories and their advocacy.”