Ag View Pitch: Hope for China trade deal

Chris Barron and Duane Lowry dive into the US/China trade developments and everything else you need to know to set up your week.

This week Chris Barron and Duane dive into the US/China trade developments. Contrary to the skeptics, there are seriously legitimate reasons to believe that China will in fact live up to promises regarding US agriculture in this Phase One agreement, at least for the first year. The scope of the increase in US ag purchases is very notable. If it is true, and we believe there are reasons to believe that it is, then China's purchases will expand far beyond just soybeans. To reach these dollar figures, China's US ag purchases will need to be running on all cylinders and we should expect to see noteworthy evidence in the 1st Quarter of 2020.

Also, we know that producers are facing serious challenges in the financial sector following several years where working capital may have declined, which especially is coming to light with a year like 2019, where yields may have been well below recent years and where harvest costs were elevated. If you find yourself stressed by the challenges in 2019 and the stresses associated with 2020, listen to this podcast and listen all the way to the end. There can be light at the end of the tunnel, but you must confidently embrace the challenges by finding unity in your operation and sometimes seeking the guidance from someone outside of your operation. We have 10 days until a joyous Christmas holiday! Soon it will be a New Year! From the birth of a Savior to the birth of a New Year, there is joy and hope in new beginnings. Embrace and enjoy this Christmas season with your family and search your own operation for new beginnings and the birth of optimism. They say that the holiday season is a time where stress levels can become extremely difficult to handle and we all know that to be true. But possibly more true than that is the fact that a focus on new beginnings brings joy and peace. Let's all get to that point, for from that point is where things get better!

While our Sunday Week Ahead Outlook is largely market focused, for some reason our spontaneous podcast added an additional dimension this week. Maybe this message is just for you? Lots of supportive/constructive developments have recently evolved and just maybe we can build some confidence in an improving situation during the next 90+ days--improving both the financial outlook for 2019 inventory and 2020 production planning. Not only is it a time for some optimism, it is time for confident optimism! Listen, discern and hopefully enjoy today's podcast!

The Ag View Pitch is brought to you by Ag View Solutions. Ag View Solutions serves farmers like you throughout the United States by providing value and direction in your farm’s Profit Management, Peer Groups, Business Collaboration and Structuring, Transition, Emergency Response and Safety, and Marketing needs. Our goal is giving operations peace of mind in business by providing the most value, and tailoring to your specific needs. No two farms are the same, and we work as an integral part of your operation to find the missing pieces, and help a good operation become a great operation.

Learn more at agviewsolutions.com, follow us on Facebook, and reach out to us directly at agviewpitch@gmail.com, or cbarron@agviewsolutions.com.

 

TAGS: Trade
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