(Radio Iowa) — Concern is growing among farmers and ag groups that the U.S. and China won’t agree to a long-term trade deal ahead of a self-imposed deadline. President Trump announced at the end of the G20 Summit he and Chinese President Xi would halt the trade war for 90 days in hopes of reaching an agreement. The Summit was a month ago, meaning that window is now a third of the way closed. The trade war has hit soybean growers especially hard. Bill Gordon is vice-president of the American Soybean Association. “The worst thing that can happen is we roll product and have product in the ocean on the way over (to China), 90 days comes (and) we don’t have a deal or anything in the works and all of the sudden our boats are being diverted to other markets,” Gordon said. ” That would renege all the good that we’ve done in these markets now.”
China just recently resumed buying U.S. soybeans for the first time in six months, but the purchases are well behind the pace of previous years. Most soybean growers in Iowa have placed this year’s crop in storage, while waiting for better prices. Gordon suggests farmers shouldn’t hold out too long. “I also do accounting on the side and I tell my guys, ‘we’re not trying to hit grand slams here, we’re trying to get base hits,'” Gordon said. “You need to look at your profitability on your farm and everybody’s price is different. If we get to those levels where you’re profitable or at least break even at your yields, make some sales, don’t wait.”
Gordon grows corn and soybeans in Worthington, Minnesota – just 10 miles north of the Iowa border.
(Thanks to Mark Dorenkamp, Brownfield Ag News)
Facebook
Twitter
YouTube
RSS