Trade war may end up pushing ag producers elsewhere

Trade war may end up pushing ag producers elsewhere

Tensions continue to rise with the U.S. and our biggest agriculture trading partner, China, and President Trump proposed adding 10% tariffs on another 300 billion in imports from September 1st on Thursday. David Gibson, with Texas Corn Producers, says if the U.S. and China don't patch things up soon, they will have to turn to other buyers. 

"Mexico is our number one buyer and right now it's South Texas where our growers have finished their harvest and they're in the market buying some corn which helps us on that end," Gibso

Steve Verett with Plains Cotton Growers says the current uncertainty has made producers uneasy. 

"I think most people are just sitting and waiting and just hoping that some of this stuff can finally be worked out and maybe we can get to some type of normality of this issue," Verett said. 

While Title 1 of the farm bill helps offset price declines and crop insurance covers yield risk with a revenue component, Verett says that form of income isn't ideal. 

"All farmers would much rather see their income come from the market as opposed to having to rely on the government program to step in. Thank goodness they helped put that in place to help weather the storm. Certainly none of these things are anything a farmer did or inflicted upon themselves. It's something that is out of their hands."

Verett says the price impact is concerning. 

"As long as prices are at this level, it's going to affect producers. These are not sustainable prices where we're at today," Verrett said. 

The White House has already designated $28 billion that the government will send to farmers whose sales to China have been crippled or blocked.

Powered by Frankly
All content © Copyright 2000 - 2019 RAMAR. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.