US Soybean Farmers Near ‘Financial Precipice’ Due to Tariffs
(Bloomberg) -- US soybean farmers are near a “trade and financial precipice” and cannot survive a prolonged trade war with China.
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That’s the warning from Caleb Ragland, president of the American Soybean Association. In a letter to President Donald Trump dated Tuesday, he urged the administration to reach a deal with China to remove duties and, if possible, include significant soybean purchases.
“US soybean farmers cannot survive a prolonged trade dispute with our largest customer,” he said. “Soybean farmers are under extreme financial stress. Prices continue to drop and at the same time our farmers are paying significantly more for inputs and equipment.”
In an email statement to Bloomberg News, the White House said the president cares about farmers.
“President Trump will continue to open markets and level the playing field for American farmers to ensure they can sell as many made-in-America products as possible,” White House Deputy Press Secretary Anna Kelly wrote.
China hasn’t purchased a single cargo of soybeans from the next harvest, which starts in September. In typical years, the Asian nation ordered an average of 14% of its estimated purchases from the US before crop gathering began, according to an analysis by the group, provided to the administration together with the letter.
US sales to other countries haven’t been able to make up the difference, Ragland said, adding that tariffs are making US supplies less competitive than those from rival Brazil.
“The further into the autumn we get without reaching an agreement with China on soybeans, the worse the impacts will be,” he said. “As you and your team negotiate with China, we urge you to prioritize soybeans.”
(Updates with White House comment in the fourth and fifth paragraphs.)
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