China situation murky as farmers express more concerns
The trade relations between China and the United States remains murky, as President Trump posted conflicting statements on social media and American farmers said their economic situation is dire.
After China said Friday that it would impose export controls on rare earth minerals, Trump said China was taking an “extraordinarily aggressive position on trade.”
But on Sunday Trump posted, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!! President DJT”
But the Associated Press on Sunday reported that China said it won’t back down in the face of a 100% tariff that Trump threatened.
“China’s stance is consistent,” the Commerce Ministry said in a statement posted online. “We do not want a tariff war but we are not afraid of one,” the AP reported.
On Friday, following reports that Trump has canceled his planned meeting with Chinese President Xi amid escalating trade tensions over the rare earth mineral restrictions, American Soybean Association President Caleb Ragland, a soybean farmer from Magnolia, Ky., said, “ASA is extremely disappointed that the planned meeting at the end of the month between President Trump and Chinese President Xi is canceled as of right now due to the recent actions of the Chinese government to further restrict access to rare earth minerals.”
“ASA was hopeful that these upcoming talks between the United States and China would lead to a deal that would restore U.S. soybean exports to China, traditionally soybean farmers’ largest export by far,” Ragland said.
“Trade wars are harmful to everyone, and these latest developments are deeply disappointing at a moment when soybean farmers are facing an ever-growing financial crisis. ASA hopes that talks can be put back on track to restore markets and trade relationships.”
Also on Friday, the American Farm Bureau Federation sent letters to Trump and congressional leaders emphasizing calling for a federal payment in 2025 because “falling crop prices, skyrocketing expenses and trade disputes are creating conditions that are too much for farm families to bear.”
“Across the country, farms are disappearing as families close the gates on the farms tended by their parents, grandparents and generations before them,” wrote Farm Bureau President Zippy Duvall.
“Every farm lost takes with it generations of knowledge, community leadership and the heartbeat of local economies: fewer kids in schools, fewer trucks at the grain elevator, fewer small businesses that keep rural towns alive,” Duvall said.
“As those farms disappear, so too does America’s food independence: our ability to feed ourselves without relying on foreign supply chains.”
“In the short term, we urge leaders to authorize bridge payments for farmers before the end of 2025,” wrote Duvall. “These payments must be robust enough to address sector-wide gaps and provide meaningful support as the federal government works to recalibrate trade strategies, stabilize prices, and strengthen key market relationships.”
Meanwhile, DTN/Progressive Farmer reported that Trump and Agriculture Secretary Brooke Rollins had blamed former President Biden for the current situation, but that Tom Vilsack, the agriculture secretary under Biden, defended the administration’s record.
In an email to DTN, Vilsack said: “Happy to remind folks of the Biden record for farmers, ranchers and producers; or perhaps I should say records of the Biden administration as in:
“1. Record net cash farm income;
“2. Record exports of agricultural products including sales of soybeans to China;
“3. Record investments in sustainable agriculture commodities, in independent meat and poultry processing capacity, fertilizer production capacity, conservation programs, local and regional food systems, renewable energy and renewable fuel infrastructure resulting in more, new and better markets for our farmers and ranchers.”
The National Corn Growers Association released a report noting that corn use in ethanol has “flattened,” and calling on Congress to allow the sale of E15 nationwide year round.
“Clearing the hurdles for higher blends of ethanol provides potential for market-driven demand for homegrown corn,” the report said. “This is a solution farmers need now. Full implementation of E15 lays the groundwork for future solutions.”
There were also reports that China’s September exports beat expectations as the country strengthened trade relations with countries other than the United States.
