Page 25 - ARUBA TODAY

BUSINESS Friday 20 July 2018
A25

Farmers fret and wait as US-China trade war escalates

By STEVE KARNOWSKI he said. "We don't really
BLAKE NICHOLSON defend tariffs; we defend
Associated Press fair trade. We wish there
MINNEAPOLIS (AP) — Many were other ways he could
anxious American farmers go about finding a solu-
are delaying purchases tion."
and investment while hop- Petefish has been tell-
ing for a truce in a U.S.-Chi- ing people how the price
na trade war that has left plunge is already costing
their crops at a competitive farmers like him. Soybeans
disadvantage overseas. have dropped more than
The longer the Trump ad- $2 a bushel on the Chica-
ministration's tariffs remain go Board of Trade in the
in place, the more China's last few weeks due to the
retaliatory tariffs against trade tensions. That means
American exports stand to the 2017 beans left in his
hurt U.S. soybean and pork bins are suddenly worth a
producers. lot less.
President Donald Trump's "On my farm it's the equiv-
administration on July 6 car- alent of $250,000 ... in lost
ried out its threat to impose value," he said.
25 percent tariffs on $34 bil- And that hit comes on top
lion worth of Chinese prod- In this July 18, 2018 photo, soybean farmer Michael Petefish walks through his soybeans at his farm of already low commodity
near Claremont in southern Minnesota.
ucts, alleging that Beijing Associated Press prices that have cut farm
steals or pressures U.S. com- incomes by 50 percent
panies to hand over tech- stand to be doubly affect- those bushels, but they'd bean Association and the since 2012, he said.
nology. China responded ed. They grow corn and take a loss if they sold any American Farm Bureau "If you're not already in the
with similar duties on the soybeans and raise pigs more at current prices. So Federation descended on red, this will push you into
same amount of U.S. im- near Welcome in southern they're hoping the markets Capitol Hill on July 11 to the red for this year," he
ports — including soybeans Minnesota. She said the get some good news that tell lawmakers and staffers said.
and pork. The administra- main thing they and their will send prices back up. how they stand to become The ultimate impacts may
tion July 10 announced a neighbors have done to Greg Bartz, who farms near collateral damage in the become clearer this fall.
second possible round tar- cushion themselves is to Sleepy Eye in southern Min- trade war unless there's a At that point many farm-
geting $200 billion worth of delay investment in their nesota's Brown County, resolution soon. ers may have to sell at least
goods. Beijing vowed "firm farming operation. said he sold most of his "A lot of people aren't very part of their new crops at
and forceful measures" in "There will be no equipment 2018 corn and soybean optimistic, unfortunately," the market price, as low as
response. purchases, no improve- crop earlier this year be- said Petefish, president it may be, just to pay bills.
"From a farmer's perspec- ments, just holding our own. fore trade fears sent prices of the Minnesota Soy- "We forward-contracted a
tive all you can do is wait Basically a holding pattern. plunging. He pointed out bean Growers Association. lot of our stuff, but if it con-
and hope, which aren't And hoping things are go- that that's a gamble that "They're not sure of the end tinues on, next year will be
very good options," said Mi- ing to get worked out fairly can backfire if prices ulti- game, and that's what ev- tighter," Ericson said. "If you
chael Petefish, who grows quickly," she said. mately go up. eryone is trying to ascer- did a good job marketing I
soybeans and corn near Farmers often hedge "You never know, and you tain: What is the plan?" think you'll be OK. A lot of
Claremont in southern Min- against price downturns by don't know what produc- They also included Joe Er- people selling right off the
nesota. "If you can afford selling part of their crop on tion is going to be, either," icson, whose family grows combine — that's going to
not to be selling your beans the futures market, locking said Bartz, the county's soybeans, corns and wheat hurt them. When the com-
now, just put them in the bin in an early price for crops Farm Bureau president. near the eastern North Da- bines start rolling, that's
and store them and wait they'll harvest in the fall. One of the few things farm- kota town of Wimbledon. when you'll really start see-
for better markets. That's Patsche said she and her ers can do for now is to Ericson, president of the ing it."
about all you can do." husband marketed a little make themselves heard. North Dakota Soybean Trump trade adviser Peter
Wanda Patsche and her of their 2018 crop, so they Petefish and other farmers Growers Association, said Navarro last month said the
husband, Chuck Patsche, can count on a profit for from the American Soy- the tariffs put farmers like administration would have
him who are Trump sup- farmers' backs, Petefish re-
called.
Target is cranking up same-day porters in an awkward posi- "Right now farmers don't
tion.
know what that means," he
"I fully support my president,
delivery in New York but it's tough to defend it," added.q

Associated Press tail, with every major player toys will start on July 31 in
BIRMINGHAM, Ala. (AP) — attempting to beat, or at Hudson Valley and Kings-
Target will begin rolling out least match, Amazon.com ton. It will launch in other ar-
speedy service for thou- in its reach. eas, including Long Island,
sands of products by the Target already begun Manhattan, the Bronx,
end of the month in New same-day deliveries using Brooklyn, Queens and Stat-
York, less than a year after Shipt in other parts of the en Island, next month.
spending $550 million to country, including Texas, Il- Consumers must sign up for
acquire the same-day de- linois, Michigan and Ohio. Shipt, regularly priced at
livery company Shipt. Target Corp. said Thursday $99 for an annual member-
Rapid delivery has be- that the same-day delivery ship. Those that sign up be-
come the new front in re- of items like groceries and fore Aug. 14 will pay $49.q