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Corn, Soybeans and Manufacturing

March 20, 2020 / Paul Ericksen
SHARESHARESHARE

In 2019 the United States imposed import tariffs on a multitude of Chinese goods. In a tit-for-tat response China imposed its own import tariffs on a similar amount of U.S. goods, including corn and soybeans. Thus, China’s tariffs positioned producers in other countries with a competitive price advantage. Pre-tariff, China was the biggest customer of our country’s corn and soybean production. The result had the potential to inflict significant damage on America’s producers of these two grains.  in other words, we were in the middle of a financial crisis in one of our country’s important industries. The administration sought to make our corn and soybean producers whole by infusing money into that industry through cash grants directly to producers.  The first $16 billion was paid in May 2019 and the second $28 billion was paid in December 2019. Among other reasons that were cited in support of these payments was the need to support family farms. I have r...