Farm Policy News

On the night of Friday, December 21st, the U.S. government began a partial government shutdown.  Today’s update points to recent news items that highlight how the shutdown may impact information related to U.S. soybean exports, as well as USDA trade mitigation program payments.

Reuters writer Karl Plume reported last week that, “China on Wednesday made its first major purchases of U.S. soybeans since President Donald Trump and his Chinese counterpart Xi Jinping struck a trade war truce earlier this month, providing some relief to U.S. farmers who have struggled to find buyers for their record-large harvest.”

Last week, USDA released U.S. agricultural export data that spanned the first ten months of 2018.  Although the overall value of exports was higher for this time period compared to 2017, there were reductions in both the value and volume of soybean exports, particularly to China.  Business news articles also point to continued adjustments in global commodity markets due to the ongoing U.S., China trade war.  Meanwhile, recent news items continue to provide more clarity to U.S., China trade activity stemming from last week’s meeting in Buenos Aires.

This weekend in Buenos Aires, President Trump took important trade policy action that could impact U.S. agricultural markets.  After signing the USMCA, the president indicated that he would quickly withdraw from NAFTA, in an effort to pressure the legislative branch into action on the updated trade measure.  Meanwhile, a White House statement at the conclusion of the president’s meeting with Chinese President Xi Jinping Saturday night, indicated that, “China has agreed to start purchasing agricultural product from our farmers immediately.”

In its latest quarterly forecast for U.S. agricultural trade on Thursday, USDA reduced its fiscal year (October/September) 2019 export projections, “largely due to decreases in soybeans and cotton.”  And news articles this week provided additional insight into the market ramifications of the ongoing trade war with China, while trade aid payments from USDA have begun […]

As policy observers anticipate a meeting later this month between President Trump and China’s President Xi Jinping at the Group of 20 summit in Buenos Aires, recent news items continue to highlight the adverse impacts ongoing trade disputes are having on some sectors of the U.S. agricultural economy.  The trade war is also providing economic incentives for robust Chinese investment in its domestic agricultural production.

Reuters writers P.J. Huffstutter and Karl Plume reported Wednesday that, “Clouds crowded the Illinois sky as Nick Harre walked away from his combine at the peak of harvest to join four fellow farmers in greeting some unlikely visitors.

Updated monthly data last week from the U.S. Department of Agriculture provided additional insight into how the ongoing U.S. trade dispute with China is impacting the soybean market. Today’s update looks briefly at portions of the USDA data, as well as recent news articles that have discussed U.S. agricultural export variables, and ongoing trade issues with China.

In its latest quarterly forecast for U.S. agricultural trade, USDA indicated that, “For fiscal 2018, the [agricultural export] forecast of $144.0 billion is an increase of $1.5 billion from the previous forecast in May, largely due to higher corn, cotton, and soybean meal exports.”