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Some farmers optimistic for tariffs result, even if worried


FORT WAYNE, Ind. — Roger Hadley grows corn and soybeans in eastern Allen County. While he waited last week for the weather to improve enough to start planting, he also kept an eye on China’s threat of tariffs on U.S. goods.

“Any time you hear about tariffs, the hair goes up on the back of your neck,” he explained. “Do I like tariffs? No. But we’ve had tariffs on products for years and years to balance trade. It looks like, from the 30,000-foot mark, the President is negotiating to try to get a fairer balance of trade.

“Could we get bit by it? Yes. But China doesn’t want to starve its people.”

Hadley, who supported then-candidate Donald Trump in the 2016 presidential election, said he thinks, when all is said and done, farmers will be better off.

“When I look at the threat of tariffs over the last few weeks, it’s pretty obvious to me it’s a talking point. President Trump knows we’re way out of whack on trade with China. China knows it is way out of whack. Nobody had the cojones before Trump to take care of it. He’s not lying; we are way out of balance.”

The United States and China have been trading announcements regarding tariffs the past several weeks. China has enacted or threatened tariffs on more than 230 U.S. products, including soybeans, corn, wheat, pork and beef.

On April 9, Trump said his administration would “make it up” to farmers who might be impacted by the tariffs. “In the end, they’re going to be much stronger than they are now,” he said.

Specifics hadn’t been announced by press time. Last week, USDA Deputy Secretary Steve Censky said options included the purchase of surplus commodities to boost prices, according to media reports. Additional options could include subsidies for certain crops and buying goods for donation or school nutrition programs.

Hadley said the U.S. has a market for most of its products. “If it doesn’t sell to X, it’ll sell to Y or sell to Z. The things China is talking about are typical goods we sell and are what China’s diet needs. They’re not going to go without.”

The Wyss family raises corn, soybeans and wheat in southern Allen County. Andy and Pat Wyss, along with their son, Don, are partners in Wyss Family Enterprises. Family members have visited China twice and hosted soybean buyers from China in 2011 and South Korea in 2014.

“The agricultural community overall is supportive of balanced trade with China,” Don Wyss noted. “But the last thing we want is to be guinea pigs. We take comfort in the comments from Trump about trying to help agriculture.”

Andy said farmers can probably put up with short-term pain for long-term gain. “When this tariff stuff started to bounce around, I held my breath and said, ‘Oh no’,” he recalled. “But now we’ve heard some conciliatory talk from China. We all get nervous when President Trump talks, but if we sit back and wait a bit, it doesn’t seem like he’s going at it wrong.”

When Trump mentioned possible help for farmers, Pat said she wished he’d been more specific. “When he said he’d make it up to farmers, I was not happy because the comment was so vague,” she explained. “We don’t want to be taking the brunt of this.”

Farmers don’t want to lose customers, she pointed out, adding she’s not too worried about the possibility. “When we hosted soybean buyers from China, they liked our soybeans. They think we have good-quality soybeans. I think they would want to have that quality.”

Andy described himself as cautiously optimistic regarding the potential for additional Chinese tariffs. “We have agriculture-related negotiations going on in several areas, such as NAFTA (North American Free Trade Agreement). I don’t foresee the tariffs issue. I think we will find a meeting point and mutual benefit.”

Kip Tom grows corn and soybeans and seed corn for Monsanto Co. at Tom Farms in Leesburg. He was named a member of candidate Trump’s Agricultural Advisory Committee in 2016. He said the current tariff flap is nothing new, as the U.S. and China have been in a trade war for more than 20 years.

“Everybody should just take some pause,” Tom said. “This isn’t anything new. We finally have someone with the courage to say enough is enough. We should support the President. I can tell you this is the pathway we need to go. These are the steps we needed to take.”

Trump is a negotiator and people need to let him do his work, Tom said; the reality is, China needs the U.S. as much as we need them. “At this point, it’s like two professional wrestlers leading up to a big fight. They’re throwing around rhetoric and a lot of chest-thumping is going on. The fight is important, not the chest-thumping leading up to it.

“They both want a win-win in this. By June or July we’ll have a better trade agreement. We’ll see a stronger agricultural economy. The outcome is going to be good,” he said.

During his April 9 remarks, Trump said, “It’s not nice when they (China) hit the farmers specifically because they think that hits me.”

Tom doesn’t think the tariff situation will hurt Trump’s support among his base. He urged farmers to talk with their senators and representatives to let them know their concerns.

Tariffs will negatively affect demand for U.S. products, said Johnathan Hladik, policy director for the Center for Rural Affairs (CFRA).

“When demand is lowered or interrupted, prices won’t be as high,” he said. “Prices will fall short of what we hoped. That could be a problem for communities that depend on that income.”

Many CFRA supporters are mid-size farmers living in the Midwest and Great Plains, Hladik noted. Those producers do pay a great deal of attention to international markets.

“A lot of farmers think some of the trade agreements haven’t been great for agriculture. They see what’s going on as a lot of posturing. If we’re in a trade war and we lose, it could be difficult for a lot of farmers to continue to support Trump.”

Hladik is concerned Trump may say the United States won against China, even if it might not be true. “I don’t see anything (the administration) has to show they have the superior hand or a very effective approach in their pocket ready to use.

“I’m worried it will be sold as a win even if it’s not. Coming from a farm family, I know we farm because our families have done it for years. Knowing they may be using us as pawns in trade conversation really gets to our identity and way of life,” he added.

4/18/2018