Tag Archives: American Soybean Association

Washington, D.C. (May 10, 2019) –Today, the U.S. Trade Representative moved forward with increasing the tariff rate from 10 to 25 percent on $200 billion worth of Chinese goods. Farmers across the country are extremely concerned by the actions taken today by President Trump and his Administration. The National Association of Wheat Growers, the American Soybean Association, and the National Corn Growers Association were expecting a deal by March 1 before farmers went back into the fields but today saw an escalation of the trade war instead. The three commodities represent around 171 million of acres of farmland in the United States.

“U.S. wheat growers are facing tough times right now, and these additional tariffs will continue to put a strain on our export markets and threaten many decades worth of market development,” stated NAWG President and Texas wheat farmer Ben Scholz. “Further, members from both sides of the aisle and Chambers have reservations about the Section 232 tariffs in the U.S.-Mexico-Canada Agreement. Today’s announcement adds on another political barrier, which may hinder Congressional consideration of the Agreement.”

“We have heard and believed the President when he says he supports farmers, but we’d like the President to hear us and believe what we are saying about the real-life consequences to our farms and families as this trade war drags on,” said Davie Stephens, soy grower from Clinton, Ky., and ASA President. “Adding to current problems, it took us more than 40 years to develop the China soy market. For most of us in farming, that is two thirds of our lives. If we don’t get this trade deal sorted out and the tariffs rescinded soon, those of us who worked to build this market likely won’t see it recover in our lifetime.”

“Corn farmers are watching commodity prices decline amid ongoing tariff threats, even while many can’t get to spring planting because of wet weather. Holding China accountable for objectionable behavior is an admirable goal, but the ripple effects are causing harm to farmers and rural communities. Farmers have been patient and willing to let negotiations play out, but with each passing day, patience is wearing thin. Agriculture needs certainty, not more tariffs,” said NCGA President Lynn Chrisp.

Growers have been reeling for almost a year now after the President first imposed a 25 percent duty on $50 billion worth of Chinese goods in July 2018, and later, a 10 percent duty on an additional $200 billion worth of Chinese products, which resulted in the retaliatory tariffs on U.S. goods. These are having a compounding impact not only on agriculture but all industries across the United States.

Washington, D.C. April 19, 2019.  While the International Trade Commission (ITC) report on the United States-Mexico-Canada Agreement (USMCA) demonstrated marginal increases in agricultural exports, the value of USMCA to soybean producers goes beyond the pages released yesterday. The report is a good tool, yet it does not account for valuable non-tariff provisions in the “new NAFTA” –or look back historically on the myriad benefits to agriculture since NAFTA’s inception.

Davie Stephens, soy grower from Clinton, Kentucky, and American Soybean Association (ASA) president said, “USMCA builds upon the strong foundation set by the original NAFTA. Under NAFTA, the value of agricultural exports to Canada and Mexico increased to roughly $43 billion each year. Soybean exports to Mexico quadrupled under NAFTA, making Mexico the number two market for U.S. soybeans, meal and oil. We also saw a doubling of soybean exports to Canada, making it the number four market for soybean meal and the number seven market for soybean oil.”

Stephens continued, “We know that the modernizations included in USMCA will make trade with our North American neighbors even smoother. These non-tariff enhancements include the highest enforceable sanitary and phytosanitary (SPS) standards of any trade deal to date, an enforceable biotechnology chapter that supports 21st century innovations, and create a rapid response mechanism to address trade challenges. These provisions not only serve to update the North American agreement but set a paradigm for future free trade agreements.”

While continuing to review and assess the ITC, the American Soybean Association reaffirms its support for USMCA and urges Congress to pass the agreement once the bill arrives. Passage of USMCA is vital to ensuring continued trade with two of U.S. soybeans’ top trading partners, Canada and Mexico.