Farmers and ranchers have been patient as they watch President Donald Trump negotiate with Chinese leaders to end a trade war, but the impact of tariffs is preventing them from selling grain and meat to that country. That is hurting their bottom line, according to U.S. Sen. Jerry Moran, R-KS.
During a town hall meeting on Memorial Day in Dodge City, Kansas, Moran said a consistent theme he hears is not only ending a trade dispute with China but also with Canada and Mexico. The ability to export grain and meat are at the forefront of the Kansas economy.
A dose of good news occurred when Trump recently announced plans to remove imported tariffs on aluminum and steel imported from Canada and Mexico, which will help companies that need those materials to build equipment for farmers, the senator said.
Secretary of Agriculture Sonny Perdue recently announced a $16 billion assistance package that could provide long-term relief, but Moran said reopening export markets is the best solution.
USMCA needs approval
The United States-Mexico-Canada Agreement, which takes the place of the North American Free Trade Agreement, should be quickly approved by Congress, Moran said. The U.S. House of Representatives needs to approve the USMCA pact first and then it will be sent to the Senate for its consideration. Mexico and Canada are the top two market outlets for U.S.-made products. That fact makes it a high priority for him because Kansas’ economy depends on selling farm products.
Moran urges constituents who have Democratic representatives and senators to contact them and encourage them to support the USMCA. He agrees with Trump that Congress should take up the USMCA first.
“We have lost 50 percent of our farm income since 2013,” Moran said, adding that without exports the story will only get worse, particularly with the barriers that China now has in place that is halting exports of U.S. agricultural products to that country. “We need to resolve the dispute soon.”
While he has confidence that Trump, and U.S. Trade Representative Robert Lighthizer, with support from Perdue and others can get an agreement done, he said farmers and ranchers worry that in the long run China will look to Argentina, Brazil and others who will be reliable trade partners. Moran added it has long-term consequences on the future of family farm operations.
“I worry about farm families and they want one of their children to be back on the farm and take it over,” Moran said. “They have to tell them this is not the right time and once a kid works off the farm in a city with employers who have 401(k)s, insurance plans and other incentives, he or she might not desire to ever come back and take over the farm.”
Long-term implications
Several farmers who attended the forum voiced concerns about the long-term impact of trade interruption. A Dodge City farmer said wheat should be a welcomed commodity in China, adding that before the trade war dispute, China was also a big buyer of Kansas sorghum.
Moran believes that Trump should continue to pressure the Chinese, particularly when it comes to stealing intellectual properties. His advice to the president was to get the USMCA approved, work with the European Union and take another look at the Trans-Pacific Partnership as a long-term strategy for the U.S. to have global clout to resolve differences with China.
He also hopes that a dispute between Trump and Speaker of the House Nancy Pelosi, D-CA, could be resolved so Congress can take a look at a highway infrastructure bill because main street business would benefit.
Rural matters
While in Dodge City he paid homage to veterans who have served and particularly those who sacrificed their lives. Moran was the keynote speaker at another event at Fort Dodge. During the town hall meeting he provided an update on veteran services including the Veterans Affairs’ Maintaining Internal Systems and Strengthening Integrated Outside Networks Act, which he believes will provide more updated and responsive services to help veterans receive medical care, especially those who live in rural areas. The MISSIONS Act will replace the current Choice plan and will be unveiled on June 6, on the 75th anniversary of D-Day.
Moran also spoke about his support for Amtrak rail service and the need for upgraded broadband services that he said are both vital in rural regions. Amtrak recently received $50 million from Congress for maintenance and safety improvements for the Southwest Chief rail line that goes from southwest Kansas to Albuquerque, New Mexico.
In regard to broadband services, the Federal Communications Commission has acknowledged there are deficient areas for broadband. Moran said in traveling across the state he knows firsthand about areas where cellphone service is interrupted and broadband providers cannot provide the services that are needed for farmers, businesses and rural residents. He has applauded the Kansas Farm Bureau and others who have been making the FCC aware of those coverage deficiencies.
Dave Bergmeier can be reached at 620-227-1822 or [email protected].
