Unless the U.S. and Japan move quickly in promised trade talks, American wheat farmers stand to take significant hits in exports thanks to the swiftly approaching start of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Cotton growers are striking back against claims that they're getting better treatment from Washington than other commodities, releasing an analysis that says cotton's federal support this year will be lower than it was under previous farm programs.
The biotech portion of the U.S.-Mexico-Canada Agreement is just one example of several new ag provisions that were added during the overhaul of the North American Free Trade Agreement – NAFTA 2.0 as some are calling it - over the past year of negotiations.
The U.S. and Japan have agreed to enter into talks for a free trade agreement, a development the American agriculture sector has been hoping for ever since President Donald Trump pulled the U.S. out of the Trans-Pacific Partnership.
With the new farm bill likely stalled until after the November mid-term elections, one of the biggest disputes still to be ironed out is a provision in the House farm bill that would end commodity program payments for acreage on which farmers haven’t been growing program crops.
Some Republicans say the best thing Congress could do to help farmers withstand the turmoil in trade policy is to pass a new farm bill. But economists say the legislation is unlikely to offer much relief to farmers, especially soybean growers, even if commodity prices don’t recover from their current tariff-induced slump.
Chinese importers have already stopped buying U.S. wheat, soybean purchases are expected to drop even further, and the U.S. ag sector is expecting the financial pain to increase exponentially as long as the Trump administration persists in a trade war with China.