Less than two weeks before the December 15th deadline of additional import taxes on Chinese made products, President Trump said he didn’t have a deadline to get a trade deal done with China. “In some ways, I think it’s better to wait until after the election with China,” Trump told reporters at a NATO summit. Does another year of trade war mean another multi-billion dollar aid package to farmers? What will the additional costs of products mean for families who will likely be paying more at the store?
— The Hill (@thehill) December 3, 2019
The impacts of the ongoing trade war have been directly felt by North Dakota farmers. To try and mitigate some of those impacts, two rounds of multi-billion dollar payments have been appropriated to producers. The question is whether or not another year and potentially another payment will be enough for some of the smaller farmers to bridge the gap when hopefully a market for their products returns. Reports show the payments have gone to Southern farmers and those with larger operations. Not the small family farm as promised.
The impact on farmers is starting to ripple to other industries in the Midwest. Main street businesses, cafes, bars, implement dealers, just to name a few are all starting to wonder what impacts they’ll see without the purchasing power of family farmers. Worse yet, the import tax the Trump administration is about to levee on American families will mean an increased cost in goods and products made in China. Will there be a program to offset those impacts on families living paycheck to paycheck? Not likely.
Dr. Frayne Olson with NDSU’s Department of Agribusiness and Applied Economics joined me on my KFGO show “Afternoons Live with Tyler Axness.” We discussed the December 15th time frame and whether or not a third farm payment would be likely without an agreement. You can listen to that full conversation below. Tune in to the show weekdays from 2-4 at KFGO.com.