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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsChina Stops Buying US Agricultural Products Entirely
https://modernfarmer.com/2019/08/china-stops-buying-us-agricultural-products-entirely/Well that's not good.
It's been a genuine pleasure knowing at least several of you.
The Chinese decision is a response to two moves from Donald Trump and his administration. The first was a surprise announcement, made by Trump, that the US would begin instituting a 10 percent tariff on about $300 billion worth of Chinese goods. This came following a series of trade negotiations that press officers in the Trump administration described as productive, but Trump tweeted that China had reneged on promises to purchase certain American agricultural products (without specifying what those might have been).
Then, on Monday, Treasury Secretary Steven Mnuchin formally labeled China as a currency manipulator due to a drop in the value of the yuan. The move is largely symbolic, but also nearly unprecedented, and seen as mostly an open-handed slap in the face to China.
In response, it appears, came the Chinese governments tactic to halt the purchase of American agricultural goods. Chinas targeting of American agriculture has the benefit, in Chinas perspective, of being both a large and a political attack. China imports billions of dollars of American agriculture, being the largest importer of American soybeans and a top-three importer of American pork; overall, China is the fourth-largest importer of American agricultural goods. But attacking American agriculture also serves as a de facto attack on Trump, who is perceived to draw support from rural America.
thesquanderer
(11,990 posts)Pigs are so poorly treated on American farms, that reduced demand for them would be a good thing.
mwooldri
(10,303 posts)I'm sure the Chinese own plenty of US food processors.
I don't think it will reduce demand, the pigs will still be mistreated and people will still have cheap bacon.
katmondoo
(6,457 posts)Haven't for a long time
I haven't bought any Smithfield products since I heard the Chinese bought it.
walkingman
(7,646 posts)Recursion
(56,582 posts)We're talking 70 million tons of soybeans that have to actually go somewhere
GulfCoast66
(11,949 posts)JHB
(37,161 posts)...to try to hold the full impact off past election day.
Blue_true
(31,261 posts)Naked corruption. He will drag the rest of the country down a sewer rather than lose a base group.
I hope big-city suburbanites in swing states are paying attention, they give republicans lots of votes and they are getting royally screwed by Trump.
lunasun
(21,646 posts)world wide wally
(21,751 posts)Wellstone ruled
(34,661 posts)the Cash Croppers who made so many trips to China and brought those same Chinese buyers back to the Midwest on their own dime.
Brother Buzz
(36,452 posts)only they will be purchasing them from other countries, like Brazil, who purchase American soybeans at a depressed/distressed prices.
Recursion
(56,582 posts)Russia has been changing up their field allotment for precisely this
Brother Buzz
(36,452 posts)Recursion
(56,582 posts)questionseverything
(9,657 posts)I am saddened by the hate for farmers on du, I personally would rather have families controlling farm acres rather than mega corporate whoever buying up the land
we have the cheapest best quality food in the world because of the farmer
Recursion
(56,582 posts)over an India/China border dispute in Kashmir. Jesus, what a moron.
questionseverything
(9,657 posts)bringing the USA to its knees
Recursion
(56,582 posts)It would occasionally land on the right answer. This isn't.
Autumn
(45,120 posts)hunter
(38,322 posts)... from cruelty to animals, to poisoning the earth, to promoting unhealthy diets, to voting for anti-humanist politicians...
The cult of the "good" farmer needs to die.
It's not my fault that so many rubes, even multi-millionaire farmer rubes, were bamboozled by Trump's lies.
Or any Republican lies.
questionseverything
(9,657 posts)Detroit had 40,000 undervotes in the presidential election of 2016...that had a lot more to do with trump being elected then the 10 or 12 farmers in any given county
the problems you listed are not because of the family farmer, not even the guy that inherited a couple hundred acres they are problem the corporations have brought on us as they buy up the small failing farms
hunter
(38,322 posts)It wouldn't bother me a nano-second if the factory farm meat and dairy industries die. Or the automobile industry for whatever that is worth.
But please don't try to pin my radical environmentalist views on ALL democrats.
However I might disagree with fellow Democrats, the Republican Party is far, far, worse.
Blue_true
(31,261 posts)Those come from California. I am not sure that I will be hurt that much by farmers going under, maybe pay a little more, but we already do that with farm support payments.
You are right on under votes. Blacks here in Florida underperformed in the 2016 election. But in their defense, a lot of them are in counties that neither Hillary nor anyone big for her campaign stepped a foot in.
roamer65
(36,747 posts)2020Junker
(99 posts)So . . . . how's this all going for you?
Xolodno
(6,398 posts)...add to that, there is a domino effect. Some small towns could very well belly up and vanish with no income from farmers coming in. Loss of tax revenue to the state. Given they are GOP states, services are cut. Agricultural service companies also feel the squeeze with a loss of fertilizer, farm equipment, pesticide, etc. sales, leases, etc. And they start cutting.
Some farmers may get desperate and have an "accidental fire" on their silo housing the crop. And I've seen this in Work Comp, you know a recession is coming when the Work Comp claim frequency starts spiking, workers seeing a sudden slow down in business, which usually results in layoffs...have "an accident". Likewise, Crop Claims will spike...and crop insurance rates increase a year or so later, putting the squeeze on other farmers....perhaps even throwing them into bankruptcy.
The Great Recession (really a depression...just changed the lingo) hit suburbia and cities really hard. I'm wondering if this next one is going to slam fly-over country.
questionseverything
(9,657 posts)cover
people just do not realize how connected our economy is to ag business
not to mention how connected our dinner table is
Recursion
(56,582 posts)God it's going to be bad for them.
questionseverything
(9,657 posts)so it's terrifying
between the artic wildfires, Greenland melting, 109 degrees in paris and knee high corn in late july
it feels like the end of times
Xolodno
(6,398 posts)Many farmers deny global warming....but it's probably that reason why they couldn't plant in "normal circumstances".
While back when I was vacationing in Colorado, on a van to our river rapid destination, we were doing small talk. One person stated that since I live in California, we we're undergoing a severe drought...and snickered a bit. My response, "yes, we are in a severe drought, a really bad one...which means all your food prices are going to sky rocket". The guide for the rapid tour then spoke up and said "Yeap, a lot of our food comes from California". The individual in question, not only shut up....but his face changed for the worse.
So, I'm not snickering like the idiot on the van. Agriculture is a major US exporter and is heavily subsidized since the Great Depression for our benefit. When I visited Europe a couple of years ago, talking with other people there, they were amazed at the quantity of food. I responded stating that I was amazed at the quality of food.
Ag has always been a major factor of our economy, contrary to popular belief. For example, Napoleon relied heavily on US imports of food, when the British blockade became detrimental, along with the war of 1812, some historians speculate that he launched his war on Russia just to gain access to their crops....and we all know how that turned out.
Today is no different, need proof? Why in the fuck are farmers in the Imperial Valley California growing food in the middle of the fucking desert? Or the Fresno Valley, etc? They pay for water at the acre foot what we pay for 100 gallons (no exact number there, just making a point on the disparity). Likewise flyover country has the same deal......growing crops in what was called at one time the "Great American Desert".
Pobeka
(4,999 posts)I read well over a year ago they would target states controlled by GOP senators for economic pain if they had to.
Looks like that time has arrived.
Blue_true
(31,261 posts)Chinese companies own big meat processors here in the USA. If the bottom crashes out on grain and feed, the processors save buttloads of money. Some of the Chinese brands are too brands, so it isn't like USA consumers won't keep buying the meat products.
Hotler
(11,440 posts)I haven't looked yet, but I would think this would be big news and the markets would get scared.
Quixote1818
(28,955 posts)so they have to buy a ton of equipment from us. I would be selling my John Deere and Caterpillar stock right now.
Joe941
(2,848 posts)They're stupid.
phylny
(8,383 posts)He is very smart. He's miles ahead of the Chinese and he knows what he's doing."
Kaleva
(36,325 posts)Trump is playing 3D chess while everyone else is playing checkers.
Dawson Leery
(19,348 posts)Quixote1818
(28,955 posts)They probably buy a crap load of equipment from us.
https://www.investopedia.com/articles/investing/100615/4-countries-produce-most-food.asp
GulfCoast66
(11,949 posts)They are fucking smart. And have 3000 years of history to lean on.
Trump goes into a negotiation with them thinking about next year. They are thinking decades ahead.
This is their chance to break us. Had trump continued down the path Obama was on(I know, a joke!) working with our Europeans allies to show a united front against China, we could have pushed them along in liberalization of their economy away from government control. That horse has fled the barn.