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China’s Sanctions Against American Farmers Are Likely Permanent

Mac Slavo
October 10th, 2019
SHTFplan.com
Comments (9)

The American farmer keeps getting bombarded with bad news, and it doesn’t look like it’ll be alleviated any time soon. The tariffs the Chinese slapped on American soybeans are corn are likely to do permanent and everlasting damage to the economy.

It’s a fear many farmers from North Dakota to Mississippi have acknowledged for the past year, according to a report by Forbes. American farmers have raised their concerns about everlasting damage because they’ve invested millions of dollars in soybean expansion because of China. Now that Chinese demand has moved to Brazil instead, that market (and their investment) may be lost for good and it can be blamed on the trade war.

China’s decision to stop buying commodities like soybeans from U.S. farmers has already done irreversible damage to the agricultural industry.  Soybeans had been rotting in silos and farmers have no one to buy their goods – meaning they will likely begin missing payments if they haven’t already.

The growing risk for American agribusiness today is that much of the market share lost over the year will be hard or impossible to win back anytime soon, the Boston Consulting Group said in a report released on Wednesday. This is mostly due to long term contracts that are often signed between buyer and seller, depending on the commodity. –Forbes

China is turning to Australia, Brazil, New Zealand, Russia, and even its domestic producers as an alternative to American grown crops and animal proteins.  As long term contracts are signed, American farmers are facing a long-lasting problem.

“The threat that U.S. agribusinesses will permanently lose foreign market share is not merely theoretical. In previous trade scuffles, such as one with China involving beef, the US has not regained lost share. By making U.S. crops and foodstuffs more expensive than alternatives, high tariffs lower the cost to importers of diversification. And the less faith importers have in the US as a stable supplier, in view of the potential for future trade conflicts, the more necessary it becomes for them to hedge and further diversify. Over time, importers could completely unwind complex relationships with U.S. suppliers.” – Boston Consulting Group ‘s report

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Author: Mac Slavo
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Date: October 10th, 2019
Website: www.SHTFplan.com

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9 Comments...

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  1. Clown World says:

    You get tacky trinkets and knickknacks with a little added tax, which you can see itemized in your order.

    You will be lucky, if you are not forced to provide sweatshop labor, if caught up in a homeless sweep, say, without your ID.

    ^ Here is your end of the bargain…

    But, the only parties, who participated in bulk transactions, in economies of scale, were state interests, doing as the govt says.

  2. Beowulf says:

    Nothing is forever. China is buying record amounts of pork today from U.S. because half their hogs have died. Watch pork prices go up here. I was a farmer for 45 years. It’s a tough business. The same thing happened to the grain farmers around 1980 when Jimmy Carter cut off the Russians. Then interest rates went to 20%. Hard times for sure. A hard life makes a hard man.

  3. Clown World says:

    To provide for oneself, materially, to trick others into doing it for you, or to speculate on those who do, are possible ways not to be an NPC.

    Like pearls before swine, no serious interest has been shown in finding other, freer markets, of which we are aware.

  4. rellik says:

    Sure hasn’t hurt Texas Soybean prices all that much.

  5. Anonymous says:

    As soon as the people starve, they will change their minds.

    American farmers since the Depression has received funds from Uncle Sam.

  6. Mr_Yesterday says:

    If these big ag farmers would stop crushing the organic companies with fraudulent organics, they’d have a more sustainable industry area to fall back on. We don’t want genetically modified pesticide soaked grains and corn. That’s why the product is not selling to those whom do focus on buying USA if available. Cornucopia Institute.

  7. Bert says:

    Where is the story on this webfarce that tells the reasons why we are justified and will win this trade war?

    The American farmer is like a 500 pound woman complaining about not eating enough garbage.

    Look at the hundreds of billions pissed away subsidizing your precious American farmer. Laissez-faire would take care of these parasites.

  8. Mountain Trekker says:

    Wow this only took about a day to be shot down. Trekker Out

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