Missouri farmers and ranchers need to see some progress on the trade front, according to Blake Hurst, Missouri Farm Bureau president.
"We export in the U.S. more value of agriculture products than any other agriculture sector in the world," Hurst says. In Missouri alone, exports account for $3.6 billion from soybeans, pork, corn, cotton and other commodities.
However, he notes that farmers understand with what President Donald Trump is doing with China.
"The way China treated intellectual property, the way they have run a mercantilist economy, has been harmful to U.S. and harmful to world trade and farmers," Hurst says. "We need to see some indication that there is an end to the situation today. Farmers are suffering because of this trade war."
ART OF THE DEAL: Blake Hurst, Missouri Farm Bureau president and Atchison County farmer, says that during negotiations it is okay to agree to disagree, but movement on foreign markets must advance if American agriculture is going to survive and thrive.
For Missouri corn grower Gary Porter, the ramifications of stalling trade talks may account for losses on the farm this year.
"We are not talking about a low income or barely scraping by," the Mercer, Mo., farmer says. "We are talking about a $100,000 loss." Porter’s breakeven price is $3.73 per bushel corn. With corn prices hovering around the $3.40 mark, it is a loss of $50 per acre on his 2,000 acres of corn.
With three boys expressing interest in farming, it is hard for Porter to remain positive.
"All the farmer wants is fair trade," he says. Porter, who serves on the Missouri Corn Growers Association board, hopes the Trump administration's plans will work, but he is "a little worried about how long it will take to get there."
For cotton, corn and soybean farmer Aaron Porter, trade with China is key for Missouri soybean growers. Typically, more than half of Missouri’s annual soybean crop is exported, with nearly one in every three rows of soybeans destined for China.
The Dexter, Mo., farmer, who serves as secretary and treasurer of the Missouri Soybean Merchandising Council, points out that over the summer soybean growers saw a $2 drop in the price of soybeans. However, it is more than just an economic loss for farmers.
The Missouri Soybean Association worked with the University of Missouri Extension Commercial Agriculture Program to analyze direct, indirect and induced economic effects of trade, particularly with China. The report, Porter says, found that a 10 cent loss in soybean price resulted in $2 million less collected in state and local taxes and $36.3 million less total economic activity just in Missouri.
FOR FARM’S SAKE: Missouri corn grower Gary Porter signs a Farmers for Free Trade poster at the Missouri State Fair to show his support of ending the trade war. The Mercer County farmer says the future of his operation and others across the country depend on access to open markets.
"Free trade and export of Missouri soybeans are vitally important for the profitability and sustainability of Missouri family farmers and rural communities," he adds.
More than crops
If a Pettis County cattle producer sells a feeder calf to the Sedalia Livestock Auction for roughly $800, $300 of that is directly contributed to trade, according to Mike Deering, Missouri Cattlemen’s Association executive director.
Deering says the beef industry has been a target of high tariffs and restricted trade policy for far too long with China. "We support a level playing field, trade enforcement and trade agreements," he adds. "Hopefully this administration can quickly conclude the trade issues for U.S. beef."
Pork producers also feel the brunt of bad trade deals. Every time a pig is sold, $50 to $60, depending on the year, is directly impacted by trade, according to Don Nikodim, Missouri Pork Association executive director. However, he remains appreciative of the work the Trump administration is doing to move trade forward.
Nikodim finds it important to hold China in check. He points to China’s dealings — tariffs on dried distillers grain and ethanol, embargo on beef since a 2003 U.S. case of bovine spongiform encephalopathy or BSE and ban on technology producers use to grow pork and beef — as being hard on farmers and the pork industry.
Missouri Pork Association continues to look for and develop new markets. Nikodim points the positive of Argentina opening to U.S. pork. While the market does not rival China, he says it is a step in the right direction. "We support the administration efforts to move these trade deals forward and we are going to work with them as diligently as possible to help them accomplish just that," Nikodim says. "Hopefully it happens in a very short period of time."
Other trade at stake
Trade is a difficult issue for agriculture. Hurst says farmers, ranchers and industry leaders are concerned about the U.S. relationship with China, but at the same time are concerned about ability to trade with Canada and Mexico.
"Disagreements with those (countries) should be simple to solve," he says. "Hopefully, we can get to a point where both agree to be mad and move forward because we need foreign exports, foreign markets to thrive as an industry."
Hurst adds farmers and ranchers are supportive of the Trump administration but are "extraordinarily worried about the trade situation and very well aware of what it will mean for their farms and ranches if we don’t get this thing sold. It is the most important issue in agriculture today."
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