Farmers Patience Grows Thin Over Broken Promises

By: Pam Corn / September 10, 2019

farmer

U.S. farmers patience continues to grow thin as President Trump’s policies focus more on his trade wars with China and biofuel waivers for oil refineries.

Agricultural groups, ethanol producers and Midwestern politicians are upset that the trade war with China has slashed export sales of U.S. soybeans, pork, wheat and other agricultural products. Corn-based ethanol plants were affected by flooding that occurred in the spring for big crops. Since 2016, the Trump Administration granted waivers to dozens of oil refineries, exempting them from blending renewable fuels into their products if they could prove it was an economic hardship to do so. More than a year into the trade dispute with China, sales on these products have dried up as China retaliated against Trump’s tariffs on imports. Contracts that farmers relied on for a significant source of their income have recently evaporated, as China looks to Canada and Brazil to get the necessary products they need. Based on information supplied by the American Farm Bureau, Farm bankruptcy through June of this year was up 13% in comparison to 2018.

“The questions I hear from farmers who voted for Trump is, ‘We believed him when he said he would help make sure farm economy was better, that we could save our farms. Now, who do we blame?’” said Ted Matthews, a Minnesota psychologist who has spent 30 years counseling farmers and rural residents in the Midwest. However, many farmers plan to support Trump again in 2020 for re-election.

Based on Farm Journals Pulse’s poll of 1,153 farmers, as of August 23, Trump’s approval rating was 71%, down from the 79% in July. The farm journal’s poll came as ethanol groups complained that demand was down when Trump’s Environmental Protection Agency granted waivers to dozens of refineries which saved the oil industry hundreds of millions of dollars.

The Associated Press reports from Lincoln, Neb.: “The Nebraska Corn Board and the Nebraska Corn Growers Association issued a joint statement criticizing the Trump administration for continuing to issue oil refinery waivers that thwart ethanol production and for a trade policy that they said has damaged agriculture. ‘Many of our corn farmers have stood with Trump for a long time, but that may soon change,’ Dan Nerud, a Dorchester farmer and president of the 2,400-member Nebraska Corn Growers Association, said in a release.” The statement also said, “As harvest approaches after an extremely difficult year for agriculture, many Nebraska corn farmers are outraged by the Trump administration’s lack of support for the American farmer.”

Losing the world’s most populated country as an export market has been a major blow to the agricultural industry. Total American agricultural exports to China were $24 billion in 2014 and fell to $9.1 billion last year.

Sources

https://www.reuters.com/article/us-usa-election-farmers/many-u-s-farmers-fume-at-washington-not-trump-over-biofuel-trade-policies-idUSKCN1VV11U

https://www.nytimes.com/2019/08/27/us/politics/trump-farmers-china-trade.html

https://www.washingtonpost.com/opinions/2019/09/03/trump-has-angered-wrong-people-farmers/?noredirect=on

 

 


Categories: United States, Tarriffs, Corn, bio fuels, Trade Wars


Pam Corn

Written by

Pam Corn

As Director of Marketing for Guttman Energy, I provide expertise within advertising strategies, digital marketing, and public relations to communicate our key messaging to our stakeholders. I offer diversified leadership, drive innovation and cutting-edge business, branding, to generate interest in Guttman service offerings.


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


Comments

Subscribe to our blog

Price Feed

Stay up-to-date on current fuel prices and market trends with our NYMEX price feed (15 minute delay to the live market).

© 2018 Market data provided and hosted by Barchart Market Data Solutions. Fundamental company data provided by Morningstar and Zacks Investment Research. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer.

Categories

Contact Us