Banker: Farmers Need Free Markets Not Government Handouts

July 26, 2018 04:03 PM
 
Following President Trump’s tariff aid package announcement on Tuesday, farmers, bankers and industry leaders alike have said they’d rather have better access to free markets than government payments.

Following President Trump’s tariff aid package announcement on Tuesday, farmers, bankers and industry leaders alike have said they’d rather have better access to free markets than government payments. 

According to Alan Hoskins an ag lender, it’s too soon to know if the president’s $12 billion aid package will be beneficial. However, he says it’s clear the aid isn’t something farmers want. 

“They want free market to be able to make a profit by selling grain, not by giving a handout from the government,” he says.

The program is likely to provide an influx of cash for producers growing certain commodities, a welcome relief for cash strapped farmers heading into renewal season. 

“Cash Flow looks like is going to be tight this year,” Hoskins says. “So definitely, there's going to be some challenging conversations, but it's not something to be feared by the producers. It's just something that we need to do to work together to try to figure out the solutions that are going to help them.”

Illinois farmer Michael Cox says the aid package is a short-term fix at best. 

“There’s to many ifs about the program,” he says. 

Fortunately, Cox did some grain hedging and won’t be subject to price issues in the near term. According to Hoskins, not all farmers are like Cox and many are wide open to market volatility at this point. 

“In many cases, not everyone has done what Michael did in making sure that there were some good contracts out there,” he says adding these payments will be important to them. 

The program isn’t officially slated to launch until September 1 and payments won’t be calculated for most crops until harvest is finished. Unfortunately, for some producers September might be too late. 

Back to news


Comments

 
Spell Check

Jerry
Beardsley, MN
7/29/2018 10:23 AM
 

  The $21 billion is not a done deal by any stretch. You have to remember this is trump talking. IF the farmer sees any money from this bs talk of his I will be amazed. But you also have to remember that this is an election year and he wants to keep his base on the carrot and string. To the person in junction city, give the guy a break because he has a "R" after his name instead of a "D" , RIGHT!!!

 
 
Jerry
Beardsley, MN
7/30/2018 07:55 PM
 

  junction city-I see you like the name calling thing. To me that is a sign of a very small and narrow minded person, but just my perspective. Just remember trump has not done a dam thing yet either, just ruin the ag economy for the next ten years or so due to a very big lost market. We are in a global market and if you think china can't get their soybeans from another supplier guess again. To me trump is just a big fool who has no idea how to handle trade issues or our allies yet he thinks he is god's gift to this planet. The whole world is laughing at us and him.

 
 
jmcv02
junction city, KS
7/31/2018 01:32 PM
 

  Jerry- I didn't call you any names I just rudely stated if the letter behind some elected official's name is what sways your vote or opinion maybe you should dig a little deeper for information. Laughing at us compared to what President Obama's 8 years of apology tours around the world? Yes Brazil is supplying China but by doing so they are giving up other markets which we can gladly supply. China is paying a premium for South American beans but the quality doesn't match US beans and if the favorable currency conditions don't continue than US beans become cheaper to import. You're also ignoring the fact China already buys beans from SA due to differing harvest seasons from the separate hemispheres so Brazil can't supply them year around. Total Chinese demand exceeds total global bean exports excluding US beans so they have to eventually turn to us to fulfill their needs or reduce their bean consumption. Lastly China will do absolutely any thing necessary to avoid any civil unrest, so if China can't supply beans for domestic supply and the population starts to get restless they will turn to US beans to fill their supply gap.

 
 
Close