2020 Spring Farm Outlook

2020 Logan County Farm Outlook LINCOLN DAILY NEWS March 19, 2020 Page 19 Early in 2020, Trump was promising to continue payments through about $28 billion in subsidies earmarked to help farmers impacted by the high tariffs. Trade Deals appear to offer more hope Fortunately, two recent trade deals appear to offer a positive outlook with more favorable outcomes for farmers and the agricultural economy. In late January, Trump signed a trade deal with Mexico and Canada known as the US-Mexico- Canada Agreement that will allow stronger agricultural trade between the countries. Illinois Farm Bureau President Richard Guebert responded by saying, “This agreement is a great and vital victory that will set the stage for increased agricultural opportunity in 2020 and the years to come. One in every five acres in Illinois is planted to feed Mexican and Canadian consumers.” While expressing optimism about the US- Mexico-Canada agreement, Guerbert also said, “As farmers prepare for the 2020 planting season, hope is on the horizon for our Illinois farmers to sell what they grow.” After months of negotiation between the countries, a phase one trade deal with China was also signed in late January. Like the other agreement, this deal offers hope of bringing back the Chinese market for American farmers and stepping up exports to China. In the phase one trade deal, China promised to increase the purchase of U.S. agricultural products by an average of $40 billion a year in the next two years. These products include soybeans, corn, beef, pork, cotton and wheat among others. Various sources show soybeans made up over half of China’s purchases from the U.S. before the trade war and soybeans are again expected to be a significant part of China’s purchases. Additionally, China agreed to remove some of the provisions restricting imports of these products. Some of the changes in regulations will even allow China to import genetically modified foods. Looking back at recent challenges, Guebert commended the Trump Administration for the MFP payments that helped many farmers get through the trade wars. However, in a recent House Ways and Means Committee Hearing, Guerbert said, “We would much rather have expanded trade, and that’s why I am optimistic about the recently signed phase-one China agreement.” The expected increase in sales should help boost farm economy. As Guebert said, these purchases “will provide a huge and timely economic lift to American agriculture.” Continue 4