Literal cost of the trade war
The vice president of the American Soybean Association estimates the trade war with China has cost his farm at least $65,000.
Bill Gordon of Worthington, Minnesota, says he figures most of the two-dollar drop in soybean prices this past year can be attributed to less demand from China.
“We talk about the economics of this, we do overproduce (as does) South America. That’s all part of the supply and demand. But this time value of this trade war has definitely pushed this market lower than it probably should be.”
He tells Brownfield the $65,000 loss he’s showing only accounts for soybeans.
“That’s not counting the corn side. And that’s from zero. That’s not profit, that’s we have to come up with $65,000 dollars out of our savings account or equity to even farm next year.”
Regarding President Trump’s recent comments about providing more trade aid to farmers, Gordon says he prefers markets over payments.
“We’ve always been advocating for trade. Now the Market Facilitation Program was a necessity to bridge that gap, and if that’s the way the President and Administration is going to go again, it might be a necessity. But it’s definitely not the preferred way we want to go.”
He says farmers ultimately answer to taxpayers and the public when they receive money from the government.