Post by birddog on Jul 28, 2019 19:40:00 GMT -6
I know a lot don't believe in taking anything from the government, well this time you don't have a choice. I guess we don't have much to offer to the re-election of our president.
USDA HELP FORGETS THE BEEF PRODUCERS
USDA announced a plan to compensate U.S. farmers and ranchers with a $16 billion dollars aid program to help those harmed by the trade wars. The plan also included benefits for those unable to plant this year’s crops because of flooding. China is one of the top buyers of American agricultural products and the weakened demand has left prices low for most farm products.
USDA Secretary Sonny Purdue said the $16 billion will be divided among soybean farms, hog farmers, dairy farms, cranberry bogs, and other agricultural operations. Payments will range between $15-150/acre based upon location and expected production. In typical fashion, the details were left to local farm officials.
Largest hit among our farmers are those raising soybeans where Chinese purchases have declined by 75% over the past year. Tariffs also have hammered pork exports, but beef exports also have suffered as witnessed by examining shipments to Hong Kong that are down by half. Hog producers will receive $11 per hog and dairy farmers will pick up 2 cents per pound of milk produced.
Equity in any government handouts is always difficult. Someone must define the differences in payments between geographic regions of the country and between crops. USDA will take care to not offend areas supportive of Trump. Larger operations will be eliminated from receiving any funds if earnings, as defined by the government exceed $900,000 and there will be a $500,000 cap on individual or company payments. How adjustments of payments to producers who benefited from hedged positions on the futures market is also unclear.
The Chinese government understands self-interest, and on Friday announced that it will waive tariffs on named ag products – soybeans, corn and pork. This will allow purchases to crank back up of those products that China sorely needs. Administration trade officials will travel to China this week to renew negotiations on a trade deal. Beef producers would hope and expect that beef should be included in these discussions of exemptions of tariffs granted to soybeans, corn and pork.
Beef producers will find help when the trade disputes with China and Japan are resolved and new agreements in place. The President is right to fight these battles, but government programs never fairly compensate those suffering the damage and this time beef has been left out.
USDA announced a plan to compensate U.S. farmers and ranchers with a $16 billion dollars aid program to help those harmed by the trade wars. The plan also included benefits for those unable to plant this year’s crops because of flooding. China is one of the top buyers of American agricultural products and the weakened demand has left prices low for most farm products.
USDA Secretary Sonny Purdue said the $16 billion will be divided among soybean farms, hog farmers, dairy farms, cranberry bogs, and other agricultural operations. Payments will range between $15-150/acre based upon location and expected production. In typical fashion, the details were left to local farm officials.
Largest hit among our farmers are those raising soybeans where Chinese purchases have declined by 75% over the past year. Tariffs also have hammered pork exports, but beef exports also have suffered as witnessed by examining shipments to Hong Kong that are down by half. Hog producers will receive $11 per hog and dairy farmers will pick up 2 cents per pound of milk produced.
Equity in any government handouts is always difficult. Someone must define the differences in payments between geographic regions of the country and between crops. USDA will take care to not offend areas supportive of Trump. Larger operations will be eliminated from receiving any funds if earnings, as defined by the government exceed $900,000 and there will be a $500,000 cap on individual or company payments. How adjustments of payments to producers who benefited from hedged positions on the futures market is also unclear.
The Chinese government understands self-interest, and on Friday announced that it will waive tariffs on named ag products – soybeans, corn and pork. This will allow purchases to crank back up of those products that China sorely needs. Administration trade officials will travel to China this week to renew negotiations on a trade deal. Beef producers would hope and expect that beef should be included in these discussions of exemptions of tariffs granted to soybeans, corn and pork.
Beef producers will find help when the trade disputes with China and Japan are resolved and new agreements in place. The President is right to fight these battles, but government programs never fairly compensate those suffering the damage and this time beef has been left out.