Many farmers are in urgent need of financial assistance, especially soybean producers, in response to tariffs. High inflation, interest rates, and immigration policies have already created labor deficits and risen prices of fertilizer, seeds, and equipment. The world’s largest soybean buyer, China, has reverted to purchasing from Brazil- refusing to buy U.S. soybeans. To put it in perspective, nearly sixty percent of North Dakota's soybeans are routinely purchased by China. Therefore, many farming businesses have extremely restricted cash flow in absence of demand.The majority have considered selling off other produce inventory to store soybeans in hopes of a soon-to-come tariff deal.
It is necessary for our government to find a solution for this year's harvest, likely either a farmer bailout or ending the trade war. This raises an apparent issue, tariffs restrict net exports and imports. In class we learned that services is the U.S.'s greatest export, but it would be negligent to ignore the detrimental situation loyal U.S. producers are already in. Why would businesses want to move their production to U.S. soil if industries like farming are already struggling?
You make some valid points. I’m from Washington State and we don’t produce a lot of soybean, so I never thought about this. I find this very interesting and I wonder what is going to happen next with the tariffs
ReplyDeleteMy family farms, so I can definitely relate to the frustration and uncertainty. Soybeans go into so many everyday use products, many manufactured in China. It makes me wonder how high prices for those products will become as a result of not buying soybeans from the U.S. So, we will be hit at both ends. I feel the governments to step in with support or resolution, as this was a government caused problem.
ReplyDeleteFarmers are caught in the middle of this trade war, facing rising costs and shrinking demand as buyers like China turn elsewhere. How long can producers endure before more lasting damage happens to American agriculture?
ReplyDeleteI think a potential solution could revolve around government incentives to core industry producers. Necessary industries like agriculture need to be protected so government subsidies, price floors/ceilings, and tax breaks could be beneficial for farmers. Could property tax abatements for land owned by private farmers be a reasonable and achievable solution?
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