Soybean prices hit a 10-year low when markets reopened on Monday. No new tariffs had been levied by China against US soybeans, but
since China applied a 25 per cent tariff last July.
“It’s gone from bad to worse,” Greiner said. “I had been optimistic but last week everything blew up. It’s not good for agriculture at all.”
Jim Monroe, spokesman for the National Pork Producers Council, said resolving the US’ trade disputes was the top priority for pig farmers, who have also faced 25 per cent punitive tariffs from China on their exports since last year.
The Iowa Soybean Association says farmers are planting a crop well below their break-even level. Photo: Bloomberg
US pig farmers export about a quarter of their produce, so have been affected by trade disputes with China and other countries including Mexico.
The value of US pork exports has fallen 14 per cent so far this year, according to Monroe. Pork producers are losing US$12 per animal because of the trade dispute with Mexico – with the US subject to retaliatory tariffs of 20 per cent – and US$8 per animal because of the dispute with China.
“We understand that the administration is
with China,” Monroe said. “It is a complex undertaking and there are many interests to balance. We continue to urge the administration to resolve trade disputes as quickly as possible.”
Greiner said farmers and US officials should turn their attention to finalising other trade deals, such as the
, or expanding business with the European Union. Soybean exports to the EU surged last year as the trade war heated up.
“We need to work on these deals, deals that we can get done, because this China deal doesn’t look good at all,” he said.
Greiner said dissatisfaction with the trade tensions would not stop farmers maintaining relations with both the Trump administration and their Chinese buyers. He travelled to China in March and plans another trip in the summer in the hope that business may return to normal.
“We were very pleased with the meetings we had [with major Chinese soybean buyers],” Greiner said. “We were well received, and everyone told us, ‘We want this trade war over just as bad as you do, and we want to get back to doing business the way we were.’
“We left there fairly upbeat, but after last week I don’t have one ounce of optimism left in me.”
Trump announced on Monday that the US government would
to farmers hit by Chinese tariffs.
“From a financial standpoint as a US farmer, it is at least a little bit encouraging that they are going to take some of the tariff money [levied by the US] and provide some financial aid,” Greiner said.
“We’re planting a crop that is substantially below our break-even rate. There’s just no hope of making any money.”
Source:scmp.com/news
