According to reports, at present, farmers in the Midwest of the United States are not comfortable, originally supposed to be the harvest season, but now it has become a "tricky autumn".
Since May this year, soybean purchases in the Chinese market have suddenly returned to zero. In the past, China bought a quarter of American soybean exports, but now it doesn't want any. This change is really unexpected. In big agricultural states such as Iowa, Kansas and Ohio, the sadness of farmers has been written on their faces. Originally, I expected soybeans to help my family have a fat year, but as a result, the warehouse goods couldn't be sold, the price fell again and again, and the bumper harvest became a burden.
The anger of the American farmers directly pointed to the White House. Trump actually understood that soybeans are the pillar of American agriculture, and the root of the Republican iron ticket zone. If farmers are not satisfied, the box office will be loose, and his re-election path will be difficult. So, Trump shouted to subsidize farmers, while also hoping that China could raise US soybean orders "to four times". He also promised to "provide fast services", but China did not buy accounts.
China's attitude is very direct. A spokesman for the Ministry of Commerce once again stressed that if the United States wants to resume soybean exports, it must first cancel those unreasonable tariffs and create better conditions for bilateral trade. To put it bluntly, "you have to show sincerity first", otherwise China won't make as big purchases as before. Now China's demand for American soybeans is no longer "just needed", but "optional".
Not only that, Chinese buyers also flexibly shifted to the South American market. After the Argentine government announced the cancellation of the soya export deduction tax, China immediately ordered 10 ships of Argentine soybeans, then added to another 20 ships, enough 1.3 million tons. Argentine soybeans are cheap, high profits, just filling the supply gap in China. Data from the U.S. Department of Agriculture also showed that this is the first time in 30 years that China has not ordered American autumn harvested soybeans.
The American agricultural region wails. A spokesman for the Ohio Agriculture Bureau couldn't help but say that this was too "heartbreaking" for local farmers. The more harvests, the market is sluggish, the prices of corn and soybeans have plummeted, and farmers 'profits have been further compressed. Lawmakers from North Dakota bluntly said this was a "bitter fruit that was hard to swallow." As soon as the U.S. Treasury Department gave Argentina financial aid, Argentina relied on policies to obtain orders from China, and American farmers were left aside.
The loss of American soybean farmers is not only a loss in business, but also a blow to confidence. China has been the largest buyer of U.S. soybeans for the past two decades, and the sudden disappearance of Chinese buyers has caught U.S. farmers off guard. Ragland, a farmer in Kentucky, lamented that it was like a five-level fire, and the fire was completely out of control. Johnson, a farmer in Minnesota, also said helplessly that even if he could negotiate with China now, the harvest season would not be able to catch up.
With the continuation of the tariff policy, the cost of fertilizers, steel and other production materials increased. soybean prices fell, production costs rose again, and farmers even the most basic balance of payments became a hope. Subsidies are good, but no one wants to rely on relief.
Trump initially wanted to use subsidies to appease farmers, but everyone understood that this was only a stopgap measure and could not solve the fundamental problem. What American farmers want is a stable market, not temporary relief. Waupapp of Indiana bluntly said that we want to support our families by farming, not living on welfare. Many farmers even say that if the situation is not resolved, they will reconsider who to support in the next election.
The American media analyzed it thoroughly. Although the federal rescue plan can alleviate the temporary predicament, it can't recover the lost market share. The increase in biofuel quotas is far less than the decline in soybean exports. Many farmers are already facing huge losses, and some are even going bankrupt. Economists at the University of Arkansas say that the number of farm bankruptcies has started to rise again, and some farmers have reached the end of their tether.
Trump was finally unable to sit down at this time, publicly shouting that China could buy large amounts of U.S. soybeans. But China’s bottom line has been clear, “You have a sincere intention, restore purchases, don’t talk about it.” U.S. farmers also see clearly, government slogans scream again, soybeans can’t sell out is useless.
What makes American farmers even more sad is that Chinese buyers don't have to have American soybeans. As long as the price is right, South American soybeans can still top. Now China has not only adjusted its feed formula and reduced its dependence on soybean meal, but also invested heavily in South American ports. Soybeans from Argentina and Brazil are increasingly occupying the Chinese market, and American farmers can only watch their business be taken away.