INVESTING CHECKOFF DOLLARS
LET’S MAKE A TRADE DEAL U.S. momentum could spark deal with China BY MATTHEW WILDE
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ew trade deals in the works between the U.S. and several countries could spur an agreement with China, according to a top U.S. Department of Agriculture (USDA) official. But farmers shouldn’t expect China to resume buying U.S. soybeans anytime soon, says Ted McKinney, USDA undersecretary for trade and foreign agricultural affairs. McKinney participated in a trade roundtable discussion with Iowa ag leaders in late November, hosted by Iowa Secretary of Agriculture Mike Naig. A press conference followed. The Trump administration is acutely aware of the financial pain the ongoing U.S.-China trade war and unfair Chinese trade practices are causing producers, McKinney told the media, especially when it comes to soybeans.
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“Farmers have suffered as a result of some of the Chinese behaviors,” McKinney says. “I think we’re in this with China a little while longer. We’re not going to stop and restore trade without getting some of these things fixed.” The U.S. agreed to new trade pacts with Mexico, Canada and South Korea this year. The Trump administration recently announced intentions to begin negotiating free trade agreements with Japan, the European Union, the Philippines and the United Kingdom. McKinney hopes trade progress with other nations will inspire the Chinese to address issues with the U.S. to end the trade war between the two countries. “It might bring some pressure,” McKinney says. “They (Chinese leaders) understand geopolitical dynamics better than anyone. They know exactly what we want.”
A resolution, though, is far from imminent. “It won’t be days or weeks,” McKinney adds. “I hope it’s not years.” It’s not the news soybean farmers want to hear about their largest export customer after a record harvest, both state and nationwide. The USDA projects U.S. production at 4.6 billion bushels. Iowa is pegged at 576.5 million bushels. Grant Kimberley, Iowa Soybean Association market development director, stressed to McKinney that farmers are appreciative of USDA’s efforts to increase soy exports worldwide and help mitigate financial losses from trade disputes. But unprofitable prices and large stockpiles of soybeans are taking a toll on farmers. The USDA predicts ending stocks for 2018-19 at 955 million bushels, an all-time high.
