Grain Accumulating Due to Lack of Trade Agreement Enforcement
As the end of the marketing year approaches Crossroads Co-OP Regional Manager, Bryan Irey states that by the US not enforcing the Ag export agreement with China, the country's agriculture industry is paying the price as the US continues to accumulate grain supplies.
“It's just costing us big time on the Ag side at this point. China has gone to great lengths to establish relationships with Brazil at this point, and they continue to buy Brazilian corn and they continue to buy Brazilian soybeans. I guess although, over the course of the last two to three weeks, we have seen China present in the export market primarily for soybeans”
Irey believes that the agreement not being forced is about priorities.
“I think that the previous administration was in a situation where you know, the United States had been abused badly by the trade agreements that were in place and Trump dug his heels in just essentially forced China to come here for grain when they needed it badly and they really didn't have an option to not comply. And as we've gone through the COVID situation demand waned in China and one thing or another and it just fell by the wayside. It just wasn't a priority for the current administration.”
Crossroads Co-Op Regional Manager, Bryan Irey.