Kankakee Times

Ford-Iroquois Farm Bureau issued the following announcement on Aug. 14.

Illinois farmers, who find themselves in the middle of an ongoing trade war with one of their largest customers just weeks before the start of another bin-buster harvest, met with U.S. Rep. Adam Kinzinger, R-Manteno, at the Livingston County Farm Bureau this week.

Farmers raised concerns about the use of tariffs as a negotiating tool. But some also seem willing to give the Trump administration more time to negotiate better trade deals for the U.S.

“When you look at what the (commodity) markets are doing, it gets a little discouraging,” said Chuck Hanley, a farmer and board member of the Livingston County Soil and Water Conservation District. “Hopefully, we’re doing the right thing, and in the long run, turn things around.”

President Donald Trump targeted billions of dollars in tariffs over China’s theft of U.S. intellectual property. China responded by imposing 25 percent tariffs on U.S. beef, corn, sorghum, soybeans and wheat, among other products.

Many U.S. commodity prices subsequently deteriorated, with some currently below break-even levels for some farmers.

And it appears the Trump administration could administer another round of tariffs if China remains unwilling to negotiate.

“I heard a lot of concerns (from farmers) and understand the ag community has taken a significant hit,” Kinzinger said after the Illinois Farm Bureau event in Pontiac.

“I have mixed feelings,” he noted. “I don’t like tariffs as an instrument, but at the same time there’s been massive abuses by China. They’ve stolen intellectual property from private companies and plans for F-35 (fighter jets) and other defense-related issues. We have to fight back.”

Now could be an effective time to use tariffs against China as its economy, heavily reliant on exports to the U.S., slows, according to the congressman. But, on the flip side, the majority of U.S. soybean exports go to China, which currently looks to South America more as its soybean supplier.

“Our farm economy, which is already hurting, simply can’t withstand a prolonged trade war,” said Adam Nielsen, IFB’s national legislative director. “Farmers know they can count on Rep. Kinzinger to carry that message back to Washington.

“They (the Chinese) are our biggest customer,” Nielson noted. “Soybeans are the No. 2 export in value for the state of Illinois.”

Nielsen believes farmers will gain confidence in the Trump administration’s trade tactics once market access improves.

And signs of that appeared in recent weeks as renegotiations of the North American Free Trade Agreement (NAFTA) move toward finalization. Elsewhere, the European Union recently expanded imports of U.S. soybeans.

“I sense people are nervous but willing to give the president some leverage right now,” Kinzinger said.

“I think we’re much closer to NAFTA renegotiations than most people think,” he noted. “That’s good. The Canadians should come closer to our position, and it will be a better deal for ag negotiations in Mexico.”

American farmers and food processors sell more than $35 billion worth of ag products to NAFTA partners.

IFB will continue its ag trade tour around the state with other congressional members later this month. Details will be announced soon.

The meeting also included Farmers for Free Trade, a bipartisan, nonprofit organization comprised of farmers, ag businesses and ag organizations (including the American Farm Bureau Federation) that support ag trade.

Original source can be found here.

Source: FORD-IROQUOIS FARM BUREAU