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Soybean price chart shows why Trump is helping farmers amid trade war

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soybeans trump trade war Wisconsin farmers
A
field of soybeans sits in a Wisconsin field on July 20,
2018.

Rebecca Harrington/Business
Insider


  • President Donald Trump announced a plan on Tuesday to
    provide billions of dollars in emergency aid for farmers who
    are caught up in the middle of his administration’s trade
    battles.
  • Since China slapped a retaliatory tariff on soybeans,
    the US’s largest agricultural export to China, US prices for
    soybeans have dropped and put a squeeze on farmers.
  • This chart shows how far soybean prices have fallen in
    2018.

President Donald Trump’s administration announced a plan on
Tuesday
to provide $12 billion in emergency aid for farmers
caught in the crosshairs of Trump’s burgeoning trade battles.

“China is targeting our farmers, who they know I love &
respect, as a way of getting me to continue allowing them to take
advantage of the US,” Trump tweeted Wednesday morning.
“They are being vicious in what will be their failed attempt. We
were being nice – until now! China made $517 Billion on us last
year.”

Soybeans are the US’s
largest agricultural export to China
, with more than $14
billion going across the Pacific in 2016. Since China hit
soybeans with a retaliatory tariff, US prices have dropped and
put a squeeze on farmers.

According to Investing.com, the price for US soybeans in January
was at $963 per bushel. Now, in July, soybean prices have slipped
to $858 per bushel.


Price of US soybeans, 2018, updated July 22
Price of US soybeans,
2018, updated July 22

Jenny
Cheng/Business Insider


US agricultural products have been a major target of trading
partners in response to tariffs the Trump administration has
imposed on steel, aluminum, and about $34 billion worth of
Chinese goods. Farmers have said other countries’ retaliation to
Trump’s trade policies could cost them billions of dollars.

The Department of Agriculture said
emergency aid would be provided to farmers through direct
assistance, a government food purchase and distribution program,
and a trade promotion program.

It would be done in part through a division of the Agriculture
Department that was created to provide financial support for
farmers, according to
the Washington Post
.

But the administration’s plan is not expected to be a long-term
solution if the trade battles continue. Many Democrats criticized
the emergency aid as a short-term fix to a problem Trump created.

“President Trump is sticking taxpayers with the bill for his
failed trade war,” Sen. Diane Feinstein of California tweeted on Wednesday.
“California’s farmers want access to markets, not a $12 billion
bailout.”

Bob Bryan contributed reporting.

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