This new trade deal pays the way for our No. 1, numero uno, competitor to purchase $80 billion worth of United States agricultural products and goods over the next two years. This is only part one of the trade deal.
After 18 months of rigorous negotiations and tariffs, President Trump, along with a few agricultural leaders, and Chinese Vice Premier Liu He signed the agreement. This agreement calls for China to buy $80 billion in agriculture products over a two-year period. For 2020, it is projected they will purchase a wee-bit under $40 billion, and as numbers go a wee-bit over $40 billion in 2021. These are just a small part in a much larger agreement; China will be purchasing a total of $200 billion in United States goods.
“We speculate it will be upwards of maybe 35 million metric tons of soybeans, a couple million tons of cotton, maybe 5 million tons of corn, 2-4 million metric tons of wheat, maybe 5 million tons of DDGs (distillers dried grains) and 2 million tons of ethanol,” Dan Basses, president of the AgResource Company, said. “Now that will only encompass about $30 billion, slightly less than that. Other goods will come into there, but that’s pet food, it’s lumber products, it’s all of that. But the heart of it, we believe, will be soybeans, pork, meats and of course some dairy.”
It looks to be very promising to me; this could help to keep America No. 1 in pork and give our dairy farmers some business. I see this could be very promising and help our neighbors over a river and past a state in Wisconsin: they lost 551 dairy farms in 2019 alone, but that’s a topic for another day. For now, we can be glad 2020 is off to a good start with lots of promise.
Schiereck is the El Dorado Springs FFA chapter president.