Trade with China is Still On-Track
We have talked a lot about trade with China this week.
With questions growing about China's commitment to buy U.S. agriculture commodities as that country deals with the coronavirus outbreak, the House Agriculture Committee heard from U.S. Secretary of Agriculture Sonny Perdue.
He told the committee during a hearing on the state of the agriculture economy that he still has a positive outlook about trade with China.
--Perdue said the top commodities affected by China retaliatory tariffs were row crops, hogs, dairy, cherries and almonds. He said those commodities, especially row crops, are generally produced on larger farms "simply by the nature of the commodities themselves."
The top states that received MFP payments include Iowa at $1.6 billion; Illinois, $1.4 billion; Texas, $1.1 billion; Minnesota, $1.1 billion; and Kansas, $1 billion.
Although the China market for agriculture goods has yet to be realized and a third round of MFP payments is not expected, Perdue said the $96.7 billion forecast for farm income in 2020 is expected to be 5% higher than the inflation-adjusted average for 2000 to 2018 of $91.7 billion.--
Perdue told the committee the Chinese currently remain on track to fill their commitment to buying $40 billion to $50 billion of ag products this year