Soybean farmers are surviving Trump's trade war -- even without his $12 billion aid package
By Caitlin Dewey
July 30 at 11:08 AM
President Trump has committed $12 billion to protect American farmers hurt by his trade war, setting off a political firestorm over trade policy.
But growers of soybeans — the single largest agricultural export to China, worth $12.4 billion — have largely escaped financial damage thus far, raising questions about the purpose and timing of the bailout, say economists, commodity traders and farmers.
While soybean prices have plummeted in recent months as China slapped tariffs on $45 billion of U.S. goods, the complexity of the markets where they are sold has insulated many growers from financial harm in the short-term.
“We probably don’t need [the aid] on our farm,” said Anna Balvance, who raises soybeans and cattle in northern Iowa and is expecting strong profits this season. “A lot of guys are skeptical of it. It’s not going to change the way we do business.”
Soybean growers have been cushioned by the widespread use of forward contracts that allowed many to lock in high prices last spring, and analysts predict they will be buoyed at harvest by strong global demand for soybeans.
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https://www.washingtonpost.com/business/economy/soybean-farmers-are-surviving-trumps-trade-war--even-without-his-12-billion-aid-package/2018/07/30/c3340bb6-91bb-11e8-8322-b5482bf5e0f5_story.html
