Winning?
Winning.
The Trump/Branstad effect.
I’m cool with this as long as these farmers understand that in the event of a trade war these contracts have the potential to be cancelled. These farmers should know what they’re getting into with a regime like China...
For comparison, total US soybean production in 2016 was about 4.3+ billion bushels, with Iowa producing 570+ million bushels.
Now if only we could get farmers out of the ethanol business. Surely there are other uses for the corn that is used there, or at least the farmland. We should not be using food for fuel. We have plenty of gas and oil for our vehicles.
The widening of the Panama Canal makes our agricultural exports more cost effective, so expect more deals like this.
President Xi: “Is this Heaven?”
President Trump: “No, it’s Iowa”.
President Xi: “Could have sworn it was Heaven”.
(Field of Dreams)
This is very, very big news.
WILL FARMERS SELLOUT AMERICA FOR $$$?
Farming the World: China’s Epic Race to Avoid a Food Crisis
https://www.bloomberg.com/graphics/2017-feeding-china/
Californians, Chinese Scooping Up Farmland in Washington State
http://www.nbcnews.com/business/real-estate/californians-chinese-scooping-farmland-washington-state-n401841
Saudi Arabia buying up farmland in US Southwest
http://www.cnbc.com/2016/01/15/saudi-arabia-buying-up-farmland-in-us-southwest.html
Its good publicity for China, on a commodity they have to import regardless whether it comes from the USA, Argentina, Brazil or Canada (and which they likely would have purchased anyway), but all the soybeans in America will hardly make dent in the USA’s $350 billion yearly deficit with China.
The best news of all is that the money is not coiming from the taxpayer.
What percentage of the soybeans will be converted to ethanol?
Do the farmers get the money or Cargill?