ND farmers losing ground in international trade war
China is still holding off on making soybean purchases from U.S. farmers, as its trade war with the Trump administration plays out. A key North Dakota ag group says without an immediate solution, it could be harder for local farmers to stay in business.
As regional farmers fan out for the fall harvest, some are scrambling to find extra storage for their soybeans, because China continues to look to other nations for this commodity.
North Dakota Farmers Union President Mark Watne said the dilemma also weighs down prices for other major crops like corn. He said the ripple effect could be felt for a while.
“This is a mess, and time is of the essence here,” said Watne. “We can’t just keep throwing things into storage and not have any corrective action, someplace along the line, that’s going to utilize up the supply, or we’ll see two, three years of lower prices because of this action.”
He agreed with analysts who predict the crisis will fuel more farm bankruptcies. The Farmers Union acknowledges this summer’s domestic tax law did secure some benefits for farmers, but Watne said the effects won’t be noticed until next year.
He and other advocates have said now’s the time for emergency payments to keep producers afloat.
The U.S. Department of Agriculture secretary has hinted those details are being discussed, but policy experts say there are complications in finding the revenue.
Watne said his members have proven to be efficient, and are part of a robust food production system here in the U.S.
He suggested they’re bearing the brunt of something that’s beyond their control.
“The supplies we have should not be disrupted,” said Watne, “because of a tit-for-tat trade relationship that, hopefully, can be resolved at some point.”
He said he worries that if these issues linger, the U.S. will be seen as an unreliable trade partner on the global front.
The Farmers Union also notes that it could take a long time for new domestic markets to open up as a replacement.
Rising input costs for needs like fertilizer overshadow the trade dynamics, an issue the USDA says it’s monitoring as it weighs relief.