AFBF: Phase One A Win For American Ag

The American Farm Bureau Federation says Phase One of the trade deal with China has been a success. Farm Bureau Senior Congressional Relations Director Dave Salmonsen disputes some media and social media claims that Phase One, which is still short of annual targets, is a “failure”.

“Oh, absolutely not. I think you have to look at, for agriculture, the purchases which are trending, the trajectory’s in a real positive direction, and the standards changes. Now, China had agreed to make 57 different changes in their standards, on things like beef imports and poultry and dairy and vegetables of all kinds, peanuts, everything you could think of. And as of this time, China has implemented 50 of those changes.”

The changes Salmonsen notes have resulted in roughly 3,500 more American Ag facilities to export to China, raising hopes for a greater long-term share of China’s food market.

“We have to remember that China imports upwards of $140 billion annually of food and ag products. So, we have a market, even with their best this year, we’re looking to get up to 36 billion. Previously, at our high point, we were in the low thirties, when you think back in the early teens. So, we have never had the lions share of Chinese imports.”

Meantime, USDA and the U.S. Trade Representative’s office reported huge sales gains, especially for corn and soybeans, in recent weeks, boosting to almost 24-billion March to September China Ag buys. That’s more than 70% of this year’s Phase One commitment and double, year-to-date figures through August.

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