Site last updated: Friday, April 26, 2024

Log In

Reset Password
MENU
Butler County's great daily newspaper

Growing trade war concerns farmers

MINNEAPOLIS — Many anxious American farmers are delaying purchases and investment while hoping for a truce in a U.S.-China trade war that has left their crops at a competitive disadvantage overseas.

The longer the Trump administration’s tariffs remain in place, the more China’s retaliatory tariffs against American exports stand to hurt U.S. soybean and pork producers.

President Donald Trump’s administration on July 6 carried out its threat to impose 25 percent tariffs on $34 billion worth of Chinese products, alleging that Beijing steals or pressures U.S. companies to hand over technology.

China responded with similar duties on the same amount of U.S. imports — including soybeans and pork. The administration July 10 announced a second possible round targeting $200 billion worth of goods. Beijing vowed “firm and forceful measures” in response.

“From a farmer’s perspective all you can do is wait and hope, which aren’t very good options,” said Michael Petefish, who grows soybeans and corn near Claremont in southern Minnesota.

Wanda Patsche and her husband, Chuck Patsche, stand to be doubly affected. They grow corn and soybeans and raise pigs near Welcome in southern Minnesota. She said the main thing they and their neighbors have done to cushion themselves is to delay investment in their farming operation.

“There will be no equipment purchases, no improvements, just holding our own,” she said.

Greg Bartz, who farms in southern Minnesota, said he sold most of his 2018 corn and soybean crop earlier this year before trade fears sent prices plunging.

He pointed out that that’s a gamble that can backfire if prices ultimately go up.

More in Business

Subscribe to our Daily Newsletter

* indicates required
TODAY'S PHOTOS