Look like a lot of hog farmer in Farm belt will go bankrupt On the other ledger a lot of Chinese farmer will get new lease on life. Over the last couple of year a lot of Chinese hog farmer went bankrupt. Because of changes in hog bussiness with more stringet environment requirement and proliferation of large corporation in hog farming depressing the price of pork
Now they can look ofrward for higher price to sustain pop and mom pork producer!
Nebraska, Iowa hog farmers caught in China trade war
Updated: 6:15 PM CDT Apr 2, 2018
Andrew Ozaki
Lincoln, Nebraska —
Nebraska and Iowa farmers find themselves in the crossfire of the trade war with China.
The Chinese government officially announced Monday it will start levying tariffs on roughly 128 different American products including pork.
The 25 percent surcharge is in retaliation to U.S. sanctions on Chinese steel and aluminum.
The escalation of a trade war has producers concerned.
"We want to sell more product to China not less," said Nebraska Pork Producer Association Executive Director Al Juhnke.
He said the Nebraska exports about $16 million in pork to China every year.
"If it goes on long term, it's going to affect our rural economies here in Nebraska and the upper mid-West," Juhnke said.
There is also a ripple affect according to Juhnke.
There are three pork processing plants in the state and hogs consume a lot of soybeans.
Soybean growers are also concerned they may be targeted next.
"We have heard directly from the Chinese government that soybean imports are a prime target for retaliation," said Nebraska Soybean Growers Association Executive Director Lori Luebbe.
She said Nebraska exports $820 million of soybeans a year to China
That is the equates to one in three rows planted every year in the state is sold to China.
"We should be talking about actions that grow this important market not risk losing it," Luebbe said.
"The U.S. government and farmers have worked for decades to establish markets for U.S. soybeans in China, these steel tariffs put years of work in jeopardy."
Nebraska Gov. Pete Ricketts said Monday he has had phone conversations with U.S. Secretary of Agriculture Sonny Perdue and U.S. Secretary of Commerce Wilbur Ross recently.
"So we have been giving our feedback into the administration in regards to these tariffs and the potential retaliation and detrimental effects on agriculture in our state," Ricketts said.
Ricketts, who made a trade mission to China in November said be believes the Trump administration is continuing to talk with China.
He believes some progress is being made with tariff exemptions for Canada, Mexico, and Japan and the announcement last week, that South Korea will open markets to U.S. companies.
"We certainly want to make sure what ever we do we don't disrupt the trade relationship we do have, " Rickett said.
Other farm group organizations expressed concern, saying a trade war couldn't come at a worse time.
Producers are heading into their fifth year of low commodity prices that don't cover operating costs.
"A trade war could make our vulnerable position substantially worse and so does that make us nervous? Yes," said Nebraska Farmers Union President John Hansen.
Nebraska Farm Bureau President Steve Nelson said the tariffs will impact the state's already hurting ag economy.
"China's response is what we had feared all along and we are extremely concerned about this turn of events," Nelson said.
Juhnke said Nebraska and many farm-belt states overwhelming supported Trump for president in the November election.
He said they plan to head to Washington D.C. in the two weeks to make sure not only Nebraska's congressional delegation but others remember that.
"What can we do together to coerce the administration to hopefully settle this in the next few weeks," Juhnke said.
"We hope and want to make sure that he is listening to his core base of supporters."
f pork in the market, With this new tariff they can expect price will go up enough to revive pop and mom hog producer