To the Editor:
American soybean farmers have spent years trying to sell worldwide and were finally making headway with meaningful profits.
Now President Trump comes along with his tariffs and the price has dropped to the lowest levels since 2008. China, the largest soybean purchaser in the world, has switched to buying soybeans from South America causing American soybean stockpiles to reach their highest level ever.
High inventories mean continually falling prices. Of course, Trump said, “And soybeans are going up, and things are going up. And we’ve had very little hurt, from what I’ve done. In fact, the markets have gone up, and the farmers are going to do great.”
A JP Morgan analyst said, “At this juncture of deepening trade tensions, it is unlikely that private traders in China would seek to buy U.S. origin soybeans.”
China has canceled further high-level trade talks. With no end in sight, the hope of regaining any degree of market share is getting more difficult each day.
If “things are going up,” why did Trump give those same soybean farmers $12 billion of our tax dollars to augment their non-existent profits?
Most small farmers don’t want a handout. What they do want is a level playing field and fair trade. A trade war is not going to accomplish that goal.