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The Donald Trump trade war with China has left American farmers dependent on government support for their survival. But China is now at the forefront of farmers’ economic transformation, with rising foreign prices and rising food prices also affecting the US economy.
US intends to export $ 37.2bn worth of goods to China this year, led by the sale of soybeans, corn, nuts, cattle, wheat and poultry, US Department of Agriculture has seized prediction. That amount is 23% of total US exports to agriculture about $ 164bn.
China’s proliferation, as well as shortages of maize and soybeans caused by drought in Brazil, have posed a global threat food prices, to encourage American farmers.
“Things have changed,” said Mark Wilson, a corn farmer in Toulon, Illinois. “Now it looks very good.”
American farmers received government assistance after China withdrew Trump’s taxes on U.S. wages in 2018. The announcement of a rebate in early 2020, when Beijing promised massive agricultural purchases in partnership with the US, quickly disappeared as the epidemic spread and prompted Washington to provide additional assistance.
Government fees managed US currency in companies in 2020 to the full extent since 2013, adjusted for lending. Economists at the USDA predict that revenue will drop by 8% while most payments will be lost in 2021. But at $ 111.4bn, total revenue will remain 21% more than the average income between 2000 and 2019.
Soyabeans, which are broken down into pork feed and vegetable oils, have been exported to the United States and China. But China has re-entered the market US Corn in a major way, 23.2m tons have been shipped or stored for an advertising year ending in August, compared to less than 200,000 tons five years ago, government data showed.
The corn and soybean spring prices came a long way back when a severe drought in the summer of 2012 devastated production in the US. As the planting season begins, this year’s forecasters are expecting a good harvest, which allows farmers to use soyans that sell for more than $ 15 for one price and more than $ 6 for corn on the bushel.
“The donation was just a Band-Aid to help us, we just hoped we would see the same with these varieties,” said Dave Walton, a soybean and corn farmer in Iowa. “We have good conditions, we have just laid the ground and it is looking good right now. That is why there is so much to be thankful for. ”
The strong sale of the US belt to China comes as tensions mount between Washington and Beijing. Biden officials in recent days announced more Chinese companies impose restrictions on U.S. depositors on national security, while Trump’s heavy taxes on Chinese goods go ahead.
Whether the sale went ahead was a “$ 64,000 question that everyone wants to know the answer to,” says Scott Irwin, an economist at the University of Illinois. But he added: “I don’t see any reason why China’s purchases will change so much, globally.”
Beijing has promised to call on at least $ 80bn has traded U.S. for over two years in its first 2020 sales by the White House. China had 22% of its commitment in 2021 since April, but “achieved fast, ”According to the American Farm Bureau Federation, a tourist group.
Joseph Glauber, a former economist at the Department of Agriculture in the United States, did not want to repay the original debt on the rising market. He also mentioned a country with a slight recovery from Africa swine fever, which has affected the pig population in the country, as it promotes crop nutrition.
“I don’t think it’s a temporary thing,” Glauber said. “I think China will continue to sell very strong goods.”
The trade war that started in 2018 made some sections of the farms more attractive dependence on Chinese purchases. John Baize, a consultant at the US Soybean Export Council, said the diversification approach is a “major goal”, and is using companies to trade in Southeast Asia, North Africa and the Middle East.
“We are relying on China now,” Baize said. “But, you know, China is also very dependent on the rest of the world for its soybeans.”
The American Farm Bureau Federation has stated that it will not pressure Washington to pay more. “We are not in a position to solicit money or reduce stress once things get better,” said Veronica Nigh, an economist with the federation. But he added that if sent to China “south”, farmers could also seek help.
In Iowa, Walton hopes: “We will see more and more benefits. Not just strong winds or diamonds, but temporary benefits. ”
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