US-China Trade Tensions: US soybean farmers caught in crossfire
Updated 10:37, 04-Aug-2018
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Soybean farmers in the US are finding themselves caught in the crossfire of this trade conflict. CGTN's Dan Williams reports from American farming country in the US state of Illinois.
Fields of soybeans for as far as the eye can see. The Rincker farm in southern Illinois looks set for a bumper yield like many other farms across the U.S. state. But Austin Rincker is far from satisfied with that prospect. The decision by the White House to impose tariffs on China earlier in the year, led to retaliatory tariffs being imposed on a range of U.S. agricultural products including soybeans. That led to an 18 percent drop in the futures prices of US soybeans in just a few months. And farmers are feeling the pressure.
AUSTIN RINCKER ILLINOIS FARMER "You would actually be looking at what crop would we lose the least amount of money. Here on the farm since 2013, crop income is down around 40%. On our farm we've traded less machinery, done more repair work, just looking at our budgets very hard and just manage risk the best we can."
There is some hope for US soybean farmers. The European Union has agreed to purchase more Soybeans from the US. While the White House has pledged to pay as much as twelve billion dollars in relief for farmers hurt by the trade dispute.
DAN WILLIAMS MOWEAQUA, ILLINOIS "With harvest time fast approaching, many farmers across the US could be forgiven for feeling increasingly nervous. The aid package may bring some comfort in the short term. But in the long term, the uncertainty over tariffs remains deeply concerning."
China is the largest importer of US soybeans, a trade worth around fourteen billion dollars. The Illinois Farm Bureau warns, key US markets could disappear if the trade dispute continues.
TAMARA NELSEN ILLINOIS FARM BUREAU, SENIOR DIRECTOR OF COMMODITIES "We know what can happen if you take someone who has been a good trading partner and you push them aside. So we really focus on trying to make sure our administration gets back to the negotiating table. That we get some solutions to these issues that divide us and that we move forward with expanded trade."
Despite the announcement of subsidies for farmers hurt by the trade dispute, that long term concern is echoed at the Rincker farm.
AUSTIN RINCKER ILLINOIS FARMER "I think there is maybe just a little bit of comfort there knowing the administration is backing farmers. But long term, we are not looking for any kind of aid package. We want markets to work in and markets to feed."
Soybean farmers here are preparing for a bumper harvest, but the future remains more uncertain than ever. Dan Williams, CGTN, Moweaqua Illinois.