DES MOINES, Iowa — President Donald Trump announced a big trade agreement with China on Friday. He says the deal will dramatically boost U.S. agriculture exports.
The president said, “They were purchasing 16 billion or 17 billion at the highest point, and that will be brought up to 40 billion to 50 billion, so I’d suggest the farmers have to go immediately and buy more land and get bigger tractors.”
That is welcome news for Iowa farmers struggling during a trade and tariff war with China. But many are cautiously optimistic. The Iowa Soybean Association wrote in a statement, “Knowing that we’ll have improved market opportunities for the soybeans we are harvesting is good for morale and prices. Now lets follow through and get an agreement inked.”
Chad Hart is an associate professor of economics at Iowa State University and a crop markets specialist. He is also a partner in “Farm Risk,” a firm that develops insurance products for farmers. He said it’s hard to determine the impact of the deal until all the details are hammered out.