China usually buys 60% of US soybean exports, but Reuters reports China is largely out of the market since it implemented tariffs in retaliation for Trump’s tariffs on Chinese goods. The result? The US Department of Agriculture has announced a US$12 billion aid package for all farmers, with $4.7b of it in direct payments to offset losses in the trade war. US$3.6b will go to soybean farmers. Republicans who favour free trade are dour about the welfare. The Illinois Soybean Growers vice-chairman Doug Schroeder told Reuters, “Short-term aid does not create long-term stability. Producers need trade, not aid.”
