trade

In January, amid much fanfare and optimism, China and the United States signed phase one of a trade deal intended to be the first step toward ending the nearly two-year-old trade war. In the agreement, China agreed to increase its purchases of agricultural products by $32 billion over the next two years. 

Then came the COVID-19 pandemic and the corresponding hit to the global economy, which led to lower prices for commodities like soybeans, one of the things China buys from the United States. 

During 2019, the curveballs thrown at farmers began with the partial government shutdown in January, when some U.S. Department of Agriculture agencies were closed. Spring brought a storm system—called a bomb cyclone—that dumped rain on top of frozen fields unable to make use of it, kicking off weeks of flooding exacerbated by additional precipitation. Planting ran later than usual and some farmers never got a cash crop into certain saturated fields.

U.S. farmers have long depended on foreign buyers for some of their corn, soybeans, pork and other products. And federal officials have used some agricultural commodities as tools of diplomacy for decades.

But as the Trump administration has pursued hard-line moves with major trading partners, especially China, farmers have found themselves with huge surpluses — and on the receiving end of government aid.

The U.S. trade war with China, now approaching a year, is often framed as hurting manufacturing and agriculture the most. But that’s mainly collateral damage in an international struggle over power and technology that has its roots in the Cold War, when China was still considered a largely undeveloped country.

Farmers and agriculture groups are digging through the details of the new North American trade deal, called the United States Canada Mexico Agreement, and some are raising concerns that clash with the celebratory mood of the three countries’ leaders.