Milling & Baking News - September 25, 2018 - 7

Editorial

Future of agricultural trade in hands of growers

hat has been most astonishing about the
For grain exporters, the near-term effects have
protracted agricultural trade feud with been both reduced throughput volume and, signifiChina has been the quiet. With the farm cantly worse, a sharp decline in elevations at Gulf
sector and the grain export business under serious export facilities - estimated to have slumped to
pressure and long-term damage to both being inflict- roughly 5c a bu from 15c.
ed, attention devoted to the issue seems far from comMore important are the potential longer-term ramimensurate with what is at stake.
fications for agricultural production and trade, in
The silence begins at the top. At a recent presenta- the United States and globally. The longer it takes
tion before the American Bakers Association and the to resolve the trade fight, the more likely it is China
American Frozen Food Institute, Secretary of Agricul- will relegate the United States to a residual supplier
ture Sonny Perdue discussed the Dietary Guidelines at best, a change that could be felt for decades. The
for Americans, the issue of food waste and an admin- mix of crops planted across tens of millions of acres
istration proposal to create a single, consolidated food altered significantly, beginning in 2019. The agriculsafety organization. Mr. Perdue uttered not a single tural sector is the poster child for lasting deep damage
word about agricultural trade with China. Mean- done when the United States' reputation as a reliable
while, leading trade officials in the Trump adminis- trading partner is tarnished.
tration have vigorously deAgricultural groups and cerThe agricultural sector is the poster
fended their assault against
tain grain companies and the
China and have been loath
child for lasting deep damage done
business community broadly
to concede harm to the agriwhen the United States' reputation as have issued strongly worded
cultural sector beyond what
a reliable trading partner is tarnished. criticisms of the Trump adminwill be offset by $12 billion
istration's trade policy. Still,
in farm aid delivered through initiatives, principally why does the response continue to seem muted?
its Market Facilitation Program.
As has been widely noted, agricultural producPounded by large production prospects and a ers in 2016 accounted for an important part of the
weaker demand outlook, soybean and corn prices president's electoral base. The economy is doing well
have slumped toward lows as the 2018 row crop har- overall with median household income up and unemvest gets under way. Through Sept. 6, export sales to ployment down. Growers asked by the media about
China for the new crop year totaled 1,391,000 metric their support for the president in the face of the farm
tons, down 79 per cent from new crop sales the year economy woes overwhelmingly expressed hope Mr.
before. Actual shipments year-to-date were down 90 Trump's trade approach will work.
per cent. U.S. spring wheat sales to China for 2018-19
Their patience may be wearing thin. In Washwere zero as of Sept. 6, and exporters have expressed ington recently, growers representing the National
concern Canada will absorb this business (between Farmers Union forcefully voiced their grievances
500,000 and 1 million metric tons the last two years).
to Greg Doud, the chief agricultural negotiator for
Expectations that these forces would translate into the U.S. Trade Representative. If these sentiments
weaker farm income this year have been affirmed in spread through the farming community, congresthe latest forecast by the Economic Research Service sional pressure on the Trump administration will
of the U.S. Department of Agriculture, pegging farm quickly build. There was a time in the 1970s when
income at $65.7 billion, down 13 per cent from $75.5 growers showed their discontent by rolling their
billion in 2017 and down 47 per cent from the recent tractors onto the streets of the nation's capital. If
peak of $123.8 billion in 2013. The Federal Reserve ever there was a time when growers' voices were
Bank in its Ag Credit Survey said farm credit mea- needed to loudly and clearly call for a change in
sures have begun to show signs of deterioration.
trade policy, the time is upon us. MBN
WE'RE EAGER TO GET YOUR FEEDBACK: E-mail editor@sosland.com or write to us at
Milling & Baking News, 4801 Main Street, Suite 650, Kansas City, MO, 64112
EDITORIAL STAFF
Editor-in-Chief
Morton I. Sosland
Executive Editor, Markets
Neil N. Sosland
Editor
L. Joshua Sosland
Managing Editor
Eric J. Schroeder
Senior Editors, Markets
Jay S. Sjerven
Ron Sterk

Associate Editor
Jeff Gelski
Associate Editor, Markets
Matt Noltemeyer
Digital Media Senior Editor
Monica Watrous
Digital Media Associate Editor
Rebekah Schouten
Markets, Graphic Designer,
Purchasing Seminar Coordinator
Christina Sullivan

7 / January 2, 2018
Milling & Baking News
bakingbusiness.com
/ world-grain.com

PUBLISHING STAFF
Publisher
G. Michael Gude
Associate Publishers
David DePaul
Bruce Webster
Matt O'Shea
Sales Associate
Tom Huppe
Director of
Audience Development
Michael Barbee

Audience Development
Manager
Kay Hudspeth
Audience Development
Analyst
Dustin Pickman
Director of Digital Media
Jon Hall
Digital Advertising Manager
Carrie Fluegge

Advertising Manager
Nora Wages
Advertising Assistant Manager
Erica Reyes
Advertising Coordinator
Chelsea Bulmer
Design Services Manager
Sadowna Conarroe
Design Services
Assistant Manager
Ryan Alcantara

CORPORATE
Production Specialist
Marj Potts
Senior Design Consultant
Becky White
Promotions Manager
Jim White
Promotions Media Designer
Abby Chronister
Sales Coordinator
Whitney Hartman

Chairman and CEO
Charles S. Sosland
President
L. Joshua Sosland
Chief Financial and
Administrative Officer
Staci Greco
Director of Operations
Meyer Sosland

bakingbusiness.com
/ world-grain.com
Milling & Baking
News
September
25, 2018 / 7

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - September 25, 2018

Table of Contents for the Digital Edition of Milling & Baking News - September 25, 2018