Charles Clover, Lucy Hornby and James Kynge reported on Friday at The Financial Times Online that, "Beijing signalled its readiness to go toe-to-toe with US President Donald Trump’s campaign of tariffs against China on Friday, proposing new levies on 128 American imports that heightened market fears of a looming trade war between the world’s largest economies. China’s response to Mr Trump bore the hallmarks of a carefully calibrated warning. Beijing said it was planning tariffs on about $3bn in imports, including a 15 per cent tariff on US steel pipes, fresh fruit and wine, and a 25 per cent tariff on pork and recycled aluminum."
The Wall Street Journal reported on Wednesday that, "China is preparing to hit back at trade offensives from Washington with tariffs aimed at President Donald Trump’s support base, including levies targeting U.S. agricultural exports from Farm Belt states, according to people familiar with the matter."
Today's update looks briefly at recent news items that highlight current information on farmland values. In addition, key parts of a recent Wall Street Journal article that focused on the importance of off-farm income to U.S. farm households are also included.
An article at Politico on Thursday indicated that bipartisan negotiations over the Farm Bill had stalled due to issues surrounding the nutrition title of the new measure. More specifically, the Politico article stated that, "Democrats are revolting to potential changes to the Supplemental Nutrition Assistance Program, or SNAP, still commonly known as food stamps." Also on Thursday, USDA's Economic Research Service (ERS) released a detailed annual report that explored fiscal year 2017 federal data related to USDA nutrition programs, including SNAP. Today's update looks at this ERS report in more detail, and also touches briefly on a SNAP related report released last week by the Center on Budget and Policy Priorities.
Farm Bill issues related to the Supplemental Nutrition Assistance Program (SNAP- food stamps) appear to be hampering progress on the measure this week. Today's update highlights recent news items that discuss the current impasse over SNAP provisions that are currently being discussed.
A news release last week from the Food and Agricultural Policy Research Institute (FAPRI) at the University of Missouri indicated that, “The latest analysis of national and global agricultural trends from the University of Missouri indicates little change in net farm income this year and a slight increase in 2019. However, even with modest projected increases in commodity prices in 2019, net farm income is expected to remain far below the record level set in 2013. Good news in the report includes strong demand for meat, which offset downward pressure on prices from increased production last year."
On Thursday, President Trump implemented tariffs on steel and aluminum, an action that had been anticipated since last week. Today's update explores recent news items that highlight the potential negative impact the executive branch action could have on the U.S. farm sector. Although Canada and Mexico were exempt from the new tariffs, if other countries, particularly China, take retaliatory trade measures based on U.S. trade policy, negative short-term and long-term impacts could be expected for U.S. farmers.
On Wednesday, the Federal Reserve Board released its February 2018 Beige Book update, a summary of commentary on current economic conditions by Federal Reserve District. The report included several observations pertaining to the U.S. agricultural economy.
Wall Street Journal writer William Mauldin reported on Monday that, "President Donald Trump on Monday sought to use his threat to slap tariffs on steel and aluminum imports as leverage to extract concessions from North American trading partners, while his party’s congressional leaders worked to derail a proposal that they said could spark a trade war."
A FarmPolicyNews update last month discussed executive branch implementation of U.S. import tariffs on solar panels and washing machines, as well as the possibility of future implementation of import barriers on steel and aluminum. That update also included a look at the potential of retaliatory measures, particularly by China, that could have a negative impact on U.S. agricultural exports and farm income. On Thursday, President Trump signaled that he plans to levy the tariffs on steel and aluminum imports soon. Today's update looks at recent news items that highlight the negative impact trade retaliation measures could have on U.S. agriculture if the President follows through on his import tariff promise.