AgriTalk: Chinese Trade and Machinery Pete

May 14, 2018 11:51 AM
 
 

Iowa commodity groups are making sure their voices are being heard as the Trump administration continues to work on trade deals with China. Their message—get it done.

A dozen leaders in Iowa added their names to a letter that was sent to U.S. Trade Representative Robert Lightizer, expressing just that.

Mark Recker, president of the Iowa Corn Growers Association, and Monte Shaw, executive director for the Iowa Renewable Fuels Association were among those that signed, with the idea that they need to keep their message on the front.

“This is something that impacts all of us and that is why we are working as a group to get on these letters, and hopefully with a collective voice, let the administration know exactly how this impacts us,” Recker told AgriTalk host Chip Flory.

 

When it comes to ethanol exports, the Chinese market has 45 percent tariff on ethanol imports from the U.S.,  there could be serious consequences.

“If you look at the beginning of this year all the industry experts were predicting about 1.7 billion gallons of ethanol exports, primarily driven by China,“ said Shaw. “Those same experts now say we will be lucky to hit 1.5[billion gallons], that is like taking two refineries and shutting them down.”

Shaw also said there is plenty the president can do to help the ethanol market, but some news out of Washington has him concerned.

“So far, President Trump has made good decision on ethanol, but some of this stuff that seems to be getting traction in the White House is not good at all, and we need him to put his foot down,“ said Shaw.

Both Shaw and Recker said that Secretary of Agriculture Sonny Perdue has been fighting hard to make sure the president knows how his decision effect the farming community. 

Machinery Pete

It was an eventful week for Machinery Pete, he tracked a couple of auctions that resulted in record shattering prices. Flory said there seems to be a trend of older tractors pulling in higher prices on their way back into the fields. You can learn more about the week in used machinery at MachineryPete.com.


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