U.S. Ag Sales to China to Fall by 45% in Trade War
By Chuck Abbott, Successful Farming
Agriculture.com - 11/30/2018
China, formerly the No. 1 customer for U.S. ag exports, will buy a comparatively paltry $9 billion worth of those exports this fiscal year, a startling 45 percent cutback due to the trade war, said the USDA on Thursday. Soybeans in particular are paying the price, with markedly smaller sales worldwide at the same time a record crop will swell the U.S. stockpile to an unprecedented size.
Until recently, 1 in 3 bushels of U.S. soybeans was sold to China, and the oilseed was the leading U.S. farm export to the Asian giant. “Continued trade tensions limit U.S. export opportunities for many products, most notably soybeans,” said the USDA in updating its export forecast...
... To offset the impact of the trade war on U.S. agriculture, the Trump administration has announced up to $4.7 billion in cash payments to cotton, corn, milk, hog, soybean, sorghum, and wheat producers. Agriculture Secretary Sonny Perdue said that there would be a second round of payments. The USDA could announce details next week.
The Trump tariff payments are based on a farmer’s production this year, but since storage space is tight in some regions, some soybean growers have left their crop in the field...
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