There are some jubilant grain farmers today as corn and soybean markets have jumped back to the highest level of the past year. However, there is a dark shadow of trade sanctions drifting closer to United States agriculture. Not just soybeans, but pork and potentially beef.
China and the United States, in a dispute that started with steel, then moved to intellectual property and unfair trade practices, are ready to spill over and damage several unrelated industries.
The views of the National Cattlemen?s Beef Association (NCBA) on potential trade issues which may reduce exports of U.S. beef and a look at the impasse on the 2018 Farm bill over food and nutrition benefits in the program below.
AUDIO: Profit Matters 3-30-18
National Cattlemen?s Beef Association lead lobbyist Colin Woodall says recent tariff talks, coming from the Trump Administration, has many in agriculture, including beef producers, worried. Those concerned fear how U.S. Ag export customers like China might retaliate. Woodall told Radio Oklahoma Network Farm Director Ron Hays the biggest threat is the possible inciting of an international trade war – with ag caught in the middle.
?It?s definitely a worry for us because history shows us anytime a country is hit with some sort of punitive tariff like we have done, there is always a retaliatory tariff that is put in its place against the other country, and agriculture is typically on that list,? Woodall said. ?So far, U.S. beef has not been on any of those lists, but that does not mean we couldn?t end up on the list.?
One consolation, thankfully, for the Ag industry is that President Trump has decided to exempt South Korea from these tariffs. As events develop though, Woodall says it will be a boon to the industry to have Chief Agricultural Negotiator Gregg Doud in place at the U.S. Trade Representative Office to help mediate any future tariff negotiations and potentially work out any bilateral deals with key markets like Japan.
?I think having Gregg Doud at the table is definitely going to be (a) benefit and will make sure our voice is heard a little bit more,? Woodall said. ?Even though we have butted heads a little bit with the President, we can say that overall, we?ve worked well with him on trade. All we have to do is look back at what he did last June in reopening China. But, Gregg will be a big help for us.?
Woodall also addressed the Supplemental Nutrition Assistance Program (SNAP) pushback by Democrats, against Republican efforts, to put a work component into receiving government benefits.
