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Trade Fight Threatens Farm Belt Businesses
Wall Street Journal ^ | July 2, 2018 | Jesse Newman

Posted on 07/02/2018 6:26:31 AM PDT by reaganaut1

The U.S. Farm Belt helped deliver Donald Trump to the White House, drawn to his promises to revive rural America and deregulate industry. Now, the president’s global trade offensive is threatening the livelihoods of many farmers.

Mounting trade disputes, spurred by U.S. threats to withdraw from the North American Free Trade Agreement and tariffs on billions of dollars’ worth of goods from key trading partners, have cut U.S. agricultural exports and sent commodity prices tumbling. Many farmers, who depend on shipments overseas for one-fifth of the goods they produce, say they are anxious, especially because they are already expecting bumper harvests or grappling with a dairy glut.

“We live and die by trade,” said Arkansas farmer Rusty Smith, who joined dozens of other farmers in a sunlit hotel ballroom in Grand Rapids, Mich., last week to discuss trade and agricultural commodities.

...

For farmers like Mr. Smith, who grows corn and soybeans on 1,500 acres in Cotton Plant, Ark., the 16% decline in soybean prices alone translates into a nearly $100 per-acre drop in the value of his crop. “That’s $100,000 that has disappeared into thin air,” he said. “We were already in the red, and now it’s even worse.”

Researchers at the University of Illinois and Ohio State University estimate that over four years, a 25% tariff on U.S. soybean imports by Beijing would result in an average 87% decline in income for a midsize Illinois grain farm. The loss would pressure farmland prices, they say, prompting a more than $500,000 decline in the farm’s net worth by 2021.

Farmers for Free Trade, an advocacy group, recently rolled out its third advertisement warning about the harmful consequences of trade fights for farmers.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; News/Current Events
KEYWORDS: agriculture; deadtroll; energy; farmers; hydrocarbons; incometaxes; maga; nevertrump; nevertrumper; nevertrumpers; nevertrumpertrolls; opec; soybeans; tariffs; taxcutsandjobsact; taxreform; tcja; zot
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I think the study is Soybean Tariff: How Much Could it Cost an Ohio Farmer?. Our tariffs and the tariffs of other countries in response will lower the income of Americans overall.
1 posted on 07/02/2018 6:26:31 AM PDT by reaganaut1
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To: reaganaut1

Steep and temporary to force countries that have been ripping off the USA for decades back to the negotiating table. Not taking a bunch of anti-Trump gloom and doom from the open borders/cheap labor knotheads at the WSJ.


2 posted on 07/02/2018 6:32:50 AM PDT by nickedknack
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To: reaganaut1

So what would you do? Do you just continue to allow other countries, like China, to steal intellectual property, devalue their currencies, block or impose burdens on US goods in their countries, dump product on the markets, etc.? At what point do Americans stand up for America?


3 posted on 07/02/2018 6:34:25 AM PDT by CitizenUSA (Proverbs 14:34 Righteousness exalts a nation, but sin is a disgrace to any people.a)
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To: reaganaut1

Get off soy or you will turn into the eye brow wonder from up north.


4 posted on 07/02/2018 6:35:18 AM PDT by deadrock
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To: CitizenUSA

Yes he would. He hates the USA and is a devoted globalist determined to destroy this country.


5 posted on 07/02/2018 6:36:51 AM PDT by deadrock
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To: reaganaut1
If tariffs lower the income of Americans overall, how come GDP has grown at half the rate since our trade deficit with China took off in the mid 90s vs the previous 25, 50 or 100 years?

If tariffs lower the income of the issuing country, why has China's GDP growth been explosive in the last 25 years with strong tariffs and other trade barriers?

PS that study is bogus. Here is what will happen. China will import soybean from another country and people that were importing from that other country will instead by US soybean.

When these other country drop their tariffs, drop their trade barriers, and stop stealing our IP then - maybe - we can talk about not doing tariffs on them - but that still ignores letting US MNCs skirt environmental and labor laws that are required for US production.

6 posted on 07/02/2018 6:36:52 AM PDT by rb22982
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To: deadrock
Get off soy or you will turn into the eye brow wonder from up north.

He supplements his soy with canola, as well.
7 posted on 07/02/2018 6:38:14 AM PDT by Dr. Sivana (There is no salvation in politics.)
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To: reaganaut1

Maybe short term, but not long term.
It’s time we fix this trade imbalance.


8 posted on 07/02/2018 6:42:05 AM PDT by tennmountainman ("Trust Sessions" Yeah Right.)
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To: reaganaut1

Why can’t folks see that this is a temporary negotiating tactic and NOT a long term policy?


9 posted on 07/02/2018 6:42:14 AM PDT by G Larry (There is no great virtue in bargaining with the Devil)
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To: reaganaut1

What a load of bs. Long term it will help.


10 posted on 07/02/2018 6:47:49 AM PDT by Dartoid
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To: reaganaut1; All

I don’t fully understand this whole situation, but who cares if they cannot export, if they sell to the states that would be local produce, less cost in getting it to market should mean a profit? and maybe lower prices for consumers, making more demand for their product? If they got into farming a product just for subsides and perks of exporting etc then that was their foolish choice thinking they would always have those govt helps - and maybe they need to switch to a product of local need.


11 posted on 07/02/2018 6:49:17 AM PDT by b4me (God Bless the USA)
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To: reaganaut1

Had farmers shifted to Arugula as Obama suggested everything would be fine.


12 posted on 07/02/2018 6:49:42 AM PDT by Rebelbase ( Tagline disabled.)
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To: G Larry

They know it is a temporary measure, but it still interferes with their globalist goal of one world government. And open borders.


13 posted on 07/02/2018 6:49:50 AM PDT by deadrock
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To: b4me

Have you ever been to Iowa?

Have you ever been to Kansas?

They are capable of producing far more than America can purchase. Development of export markets has enabled the vast acreage available to be productive.

We have the best fed dogs in the world. The American dogs are consuming the excess farm products.


14 posted on 07/02/2018 6:54:10 AM PDT by bert ((K.E. N.P. N.C. +12 ..... In August our cities will be burning))
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To: reaganaut1

Here is the thing.

People have to eat. By definition.

Short term disruption. Long term, places like the EU and China will start thinking about their food supply like we think about oil.

Which means that they will start producing domestically (if they can) and wean off imports.


15 posted on 07/02/2018 6:56:36 AM PDT by redgolum
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To: deadrock

Who “their”?


16 posted on 07/02/2018 7:01:08 AM PDT by G Larry (There is no great virtue in bargaining with the Devil)
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To: G Larry

Anyone who wants to keep the huge trade deficits in place.


17 posted on 07/02/2018 7:09:52 AM PDT by deadrock
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To: reaganaut1

There is a reason the RATS are called DFL in MN.
Democrat Farmer-Labor.
MN farmers are mostly very conservative but the RATS try to pretend they care about them.

Same thing with the Iron Range northern MN.
They are only tools to help move farther to the left.


18 posted on 07/02/2018 7:32:11 AM PDT by Zathras
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To: reaganaut1

“bumper harvests or grappling with a dairy glut” Yeah, and every year before this one they’ve complained the harvests were disasters due to globull warming. Gripe, complain and whine. Apparently, Trump has solved globull warming so they should be happy.

At the G-7, Trump asked the other countries to agree that everyone drops tariffs. They’re the ones who wouldn’t have anything to do with that idea. Of course, it’s now Trump’s fault that tariffs are high.

I thought the trendy thing was farm to table. This should help that.

What Trump should do is end all crop allotments. That’d really send farmers into a tizzy. What?!? I’m not getting my yearly government check to NOT to grow xyz crop???


19 posted on 07/02/2018 7:49:46 AM PDT by bgill (CDC site, "We don't know how people are infected with Ebola.")
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To: reaganaut1

“Mr. Smith, who grows corn and soybeans on 1,500 acres”

Maybe try diversifying and growing actual food that Americans eat instead of a commodity. Let the other, 3rd world countries grow their own corn/soybeans.


20 posted on 07/02/2018 8:02:33 AM PDT by Pollard (If you don't understand what I typed, you haven't read the classics.)
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