Touch the Soil News #1059 (Feature photo – Soybean Field – GNU Free Doc License)
America is farming 322 million acres of cropland in 2018. Of those acres, almost 90 million (28%) are planted to soybeans. Last year China purchased $14 billion of U.S. Soybeans – a market that underpins a significant share of farm income.
The problem is that South America is also a large soybean producer. This means the U.S. is not the only farmer in the world. At the crux of the matter is that trade wars could hurt the most vulnerable – farmers and poor people with insufficient purchasing power.
One must ask, why is the Federal Reserve raising interest rates which push up the value of the dollar, making American exports too expensive for many? Is this really a war over balance of trade or an attempt to fix international monetary speculation and currency imbalances?