U.S.-CHINA TRADE WAR COULD BE ‘DEVASTATING’ FOR FARMERS, FORMER USDA ECONOMIST SAYS

American farmers could be one of the biggest losers if President-elect Donald Trump starts a trade war with China, a former chief economist for the Agriculture Department said today.

The United States currently exports about $20 billion to $24 billion worth of agricultural exports to China each year, and that’s expected to “grow even more over the next 10 years,” Joe Glauber, a visiting senior research fellow at the International Food Policy Research Institute, said at a discussion on U.S.-China farm trade hosted by the U.S. Chamber of Commerce. “That’s a pretty big vulnerability.”

Trump has threatened to use a variety of trade measures to defend the U.S. manufacturing sector and try to bring jobs back to the United States, raising the prospect of a tit-for-tat trade war with the world’s second largest economy.

In the short-term, it would be hard for China to replace all of the soybeans and other agricultural products it imports from the United States.

“But there are other sources,” Glauber said. “I think Brazil and Argentina and Ukraine and a number of other places would be more than happy to fill whatever needs they could, shipping soybeans to China. I think these things can be very devastating and let’s hope it doesn’t get to that point.”

The United States exported $10.5 billion in soybeans to China in 2015. That was more than half of the $20.3 billion in total U.S. farm exports to China.

Altogether, American farmers enjoyed a $16 billion farm trade surplus with China last year, with other major exports including sorghum ($2.1 billion), distiller’s dried grains with solubles ($1.6 billion), cotton ($860 million), forage products ($359 million), dairy products ($350 million), pork ($319 million), as well as wheat, corn, poultry and additional farm goods.

More Advocacy Issues

On April 16, 2021, the China Cotton Association (CCA) wrote the Committee for International Co-operation Between Cotton Associations (CICCA) a letter regarding cotton in the Xinjiang region of China. The China Cotton Association also released a statement regarding the recent boycott on Xinjiang cotton by apparel brands. See both the letter and statement below. Letter […]

Read More
 

On April 14, 2021, Memphis stakeholders wrote a letter to Chairman Oberman of the Surface Transportation Board expressing the need for assistance in resolving the current inland rail crisis affecting importers, exporters and motor carriers in the area. See the full letter below. Click Here

Read More
 

On March 15, 2021, Mississippi State University published the expected PLC payments for the 2020 year. Please see the link below for more information. Click Here

Read More
 

The link below provides an overview and key takeaways from the Senate Banking Committee hearing to consider Gary Gensler to be a Member of the U.S. Securities and Exchange Commission (SEC). Click Here

Read More
 

The National Cotton Council provided a cotton specific summary of the Quality Loss Adjustment Program and examples. See below. Click Here

Read More
 

Yesterday, the Senate Agriculture Committee held a hearing to consider the nomination of Tom Vilsack to be Secretary of Agriculture. Click below for details from the hearing. Click Here

Read More