China proposes large U.S. ag purchases

Feb 22, 2019

U.S. farmers could see an extra US$30-billion worth of ag goods exported to China per year

By Diego Flammini
Staff Writer
Farms.com

American farmers could benefit from a Chinese proposal as part of a bilateral trade agreement.

China may offer to purchase an additional US$30-billion worth of U.S. ag products per year, Bloomberg reported. China imported US$19.6 billion of American ag products in 2017, the USDA said.

Following through on the proposal could bring U.S. ag exports to China to nearly US$50 billion annually.

The added ag purchases are part of several memorandums of understanding (MoUs) American and Chinese negotiators are working on. The MoUs include agriculture, technology transfer and intellectual property.

The publishing of a hard figure could mean a deal between China and the U.S. is possible because specific terms were never previously disclosed, said Moe Agostino, chief commodity strategist with Farms.com.

“The difference this time is that we’re hearing an amount,” he told Farms.com. “In the past, the cycle has been being close to a deal then the two countries go back to their respective trading desks. Progress is being made because we didn’t have that a month ago.”

If China and the U.S. reach an agreement, how it’s structured could affect grain markets, Agostino said.

“We need to know when it starts,” he said. “If it starts at the end of the year and it’s back-end loaded, markets are going to be very disappointed.”

The USDA is confident a deal with China will help increase grain prices.

“If we reach an agreement on structural reforms, we can recover markets very, very quickly,” U.S. ag secretary Sonny Perdue told reporters at the USDA’s outlook forum yesterday.

But, at this point, it’s “premature” to comment on what China may or may not do, he said.

Video: FLEECED! Sheep Shearer Hands Over Clippers!

It's sheep shearing day at Ewetopia Farms! ?? Our Dorset lambs and ewes are getting fleeced — and for the first time, our shearer hands over his clippers to a beginner. We finish shearing the last of our adult ewes and this year’s Dorset ewe lambs.

From moving the sheep between barns, loading them into chutes, and watching the wool come off, this is always one of the most satisfying days on the farm. But this video has a twist — we welcomed a new helper, Gian, who’s not only lending a hand but also learning how to shear! With guidance from our experienced shearer, he got a crash course in sheep shearing and even tried his hand at shearing a couple of lambs himself.

You’ll see firsthand how both teacher and student handled this unique challenge. Shearing is more than just removing wool — it’s about sheep health, comfort, and giving us a closer look at the flock. It’s always amazing to see the transformation from woolly sheep to freshly shorn ewes and lambs.