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Posts Tagged ‘china’
Sunday, November 27th, 2011
China’s 2007 ban on poultry and logs shipped from Virginia, which remains in effect despite protest from local farmers, has cost the state millions of dollars. In 2007, Chinese officials discovered strains of the avian flu in some poultry shipments from Virginia, as well as invasive insect species in several log shipments. As a result, China issued a blanket ban on all poultry and log shipments from anywhere in Virginia, regardless of whether the materials were grown in the state or imported to the state.
The ban has cost millions of dollars. In addition to the obvious loss suffered by poultry and tree farmers, Virginia ports have suffered from a decline in business as a result of the ban. According to the Virginia Port Authority, state ports have seen a decline of about 4,000 to 5,000 containers a month during peak export seasons.
Virginia officials have pressured both federal and Chinese officials to end the ban. In a letter to U.S. Trade Representative Ron Kirk, Virginia’s Secretary of Agriculture wrote, “I am very concerned by the drastic action recently undertaken by China that bans all log exports from Virginia and South Carolina. This unilateral action is an extreme action that negatively impacts many small, family-owned enterprises in two states that are following the same export protocols as wood products exporters from other areas of the country.”
In a letter directly to the Chinese ambassador, Virginia’s Congressional delegation wrote, “Virginia currently ranks 12th, among U.S. states, in our agricultural exports to your country. Last year, the value of those exports reached $194 million, thus making the People’s Republic of China Virginia’s second-largest export customer.”
While many Virginians had hoped that Governor Bob McDonnell’s visit to China in May would end the ban, it remains in place and talks between agricultural officials and Chinese trade officials are moving forward at a glacial pace.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: Bob McDonnell, china, virginia
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Sunday, November 20th, 2011
According to a report by the U.S. Department of Agriculture, local agriculture generated nearly $5 billion in 2008, a figure that could increase to $7 billion by the end of this year. Whether sold directly to consumers through farmers markets or through intermediaries like grocers, local food sales have been continuously increasing for the last several years.
The increased sales are a result of several factors. Most importantly, the USDA has been aggressively marketing locally grown produce. The Know Your Farmer, Know Your Food campaign, for example, is dedicated to improving and strengthening local and regional food systems.
The USDA’s efforts over the past several years have paid off. The number of farmers markets has tripled over the past 15 years. There are currently more than 4,000 community supported agriculture operations, up from 2 in 1986. Finally, there are farm to school programs in 48 states, up from 2 in 1998.
In addition to aggressive marketing, local farmers have benefitted from increased public consciousness. For examples, in recent years consumers have become more concerned with buying green. By buying local produce, consumers can reduce their carbon footprint by limiting shipping costs.
Increased local sales can also be explained by the USDA’s redefinition of local. While sales directly to consumers are still important parts of all local agricultural sales, accounting for about $1.2 billion, the inclusion of sales made to local restaurants and regional distribution centers account for the majority of local food sales.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, farmers markets, local farming, usda
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Sunday, November 13th, 2011
Next week Secretary of Agriculture Tom Vilsack will travel to China and Vietnam to promote American agricultural products abroad. Secretary Vilsack has long been an advocate of expanding American export markets, boasting that increased agricultural production creates desperately needed domestic jobs.
Vilsack’s decision to visit China and Vietnam represents the increased market power of those two nations. Vilsack is not the only American politician to visit East Asia. Last month, Michigan Governor Rick Snyder headed a trade delegation to China, hoping to increase Michigan farm exports and boost the state’s economy.
This year, China jumped ahead to become the largest importer of American agricultural goods, moving ahead of Canada and Mexico. Vietnam also increased its imports, moving from the 50th to the 15th place in terms of American market shares.
The goal of the trip, according to Vilsack, is to “strengthen trade relationships we have with both nations, support the American brand, and create more opportunities for American producers to sell their goods throughout the Asia Pacific region.”
Preparing for the upcoming trip, Vilsack praised free trade agreements, lauding President Obama for, “sign[ing] new trade agreements with South Korea, Colombia and Panama. When implemented, they will increase farm exports by an additional $2.3 billion—supporting nearly 20,000 American jobs—by eliminating tariffs, removing barriers to trade and leveling the playing field for U.S. producers.”
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, President Obama, tom vilsack, USDS
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Sunday, November 6th, 2011
According to reports from the Chinese government, within the next five to ten years, China will become the world’s largest importer of agricultural products. A report by Cheng Guoqiang, a researcher with China’s State Council’s Development Research Center outlined this upcoming trade imbalance. While the report was vague on the details of China’s upcoming production gaps, the situation is not entirely unexpected. China is currently the world’s largest importer of soy and cotton.
Chinese agricultural production faces a number of hurdles that prevent complete self-sufficiency. Most importantly, Chinese farmers enjoy a relatively small production base. China’s per-capita acreage is less than 40 percent of world averages.
In addition to land shortages (which are exacerbated by high population density), China is struggling with obsolete infrastructure and limited scientific and technological support.
Another factor exacerbating China’s agricultural trade deficit is the rapid growth of the Chinese middle class. China’s rapid development has drastically altered traditional eating habits, leading to increased consumption of meat products (which require increased feed crops). The increase in Chinese consumption of meat, poultry, eggs, and dairy are monopolizing China’s farm production and fueling China’s increased agricultural imports.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: agricultural imports, china
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Monday, October 3rd, 2011
Earlier this week, Michigan Governor Rick Snyder stopped in Shanghai as a part of a trade tour in the People’s Republic of China. Snyder’s visit is part of a three day trade delegation meeting designed to explore trade opportunities for China, the United States, and the state of Michigan. Accompanying Snyder is a team of government, university, and business officials.
Of particular importance for many Michiganders is the future of agricultural trade between Michigan and China. Top state officials say that if the trade talks go well that Michigan cherries, blueberries, cranberries, and other high value agricultural products could be heading to China. Michigan fruits were among the most demanded produce in the trade talks held so far.
In addition to fruits, many Michigan farmers are interested in the future of soybeans, a major crop in the state. As China develops economically, its standard of living has been rising. With the growth of the Chinese middle class come new dietary practices, including the consumption of more and more meat. As such, soybean producers in the U.S. have seen increased foreign demand for soybeans and other feed crops.
Currently the state’s 71$ billion agricultural sector exported over $50 million worth of agricultural goods, much of them going to Asia. While the trip is not necessarily concerned with forging specific trade deals, many politicians hope that strengthening the relationship between China and Michigan will lead to more lucrative deals in the future.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, Michigan, Rick Snyder, soybeans
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Sunday, May 1st, 2011
A recent agreement between the Maryland Department of Agriculture and the Chinese government could prove to be a significant boost for the state’s struggling horse industry. The Maryland thoroughbred industry has been on the decline in recent years, partly due to competition from neighboring states and partly due to political inertia and a general unwillingness to protect the industry.
On the surface, China seems an unlikely venue to revive the thoroughbred industry. Horseracing is illegal in China and the cost to ship horses is significant. However, Maryland horse breeders see a golden opportunity in the recent Chinese interest in Maryland horses. Currently, Maryland horses are already shipped internationally, and adding China to the list would do much to boost revenues.
Larry Murray, owner of Glade Valley Horse Farms, predicts that China might legalize horseracing and sees the importation of Maryland thoroughbreds, currently used in Western style riding demonstrations in China, as a critical step towards that goal. Maryland Secretary of Agriculture Buddy Hance has also praised the sales, lauding Maryland horses’ genetic quality.
Maryland horse breeders are hopeful that the federal government could soon see the value in these sorts of trade agreements. While the horse-trade is legal, some breeders have claimed that minor regulations are currently adding an unwanted level of difficulty in their sales.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, horse breeding, Maryland
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Friday, March 25th, 2011
According to a recent government report, Chinese trade barriers block up to $5 billion in U.S. farm sales. China is currently one of the world’s largest producers and consumers of agricultural products, a status gained, in part, by the rapid rise of the Chinese middle class and China’s massive economic expansion. The United States is currently the largest supplier of agricultural products to China. In 2010, the U.S. sold over $17 billion of farm products to China, mostly soybeans and animal feed.
Despite this mutual agricultural relationship, the Chinese government continues to block certain agricultural products. China maintains non-tariff barriers on U.S. meat, largely on American beef and pork exports. Pork importation, for example, is blocked in China due to fears of the swine flu (fears largely ungrounded according to the World Health Organization). While the United States International Trade Commission (USITC) has not found a concerted effort by the Chinese government to block U.S. exports, the U.S. government is seeking to lower some of the Chinese barriers to help facilitate international trade.
In a press release, Senator Max Baucus (D-South Dakota) stated, “China is our number one market for US agricultural product exports, but China’s unjustified trade barriers are blocking some of our goods such as wheat and beef and hurting job growth in the US.”
While the Chinese government has revered several trade barriers (lowering some of the bans on beef imports in December) the U.S. Senate hopes to negotiate further concessions from China, which would largely benefit both nations economically.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, max baucus, USITC
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Sunday, March 20th, 2011
 agricultural loans - food prices
According to the U.S. Department of Labor, food prices have reached a thirty year high. The higher prices, caused by a variety of factors, have been felt in the United States. Consumers, naturally, are unhappy with higher food prices, particularly in light of the continued economic decline in the U.S., while farmers are generally pleased with increased revenue.
The causes of the price increases are varied. Inflation, naturally, has played a role in driving up food prices. High fuel costs and the increasing cost of gasoline in the U.S. has also played a major role in raising production costs and driving up the final price for food and agricultural products. Another factor is the U.S.’s increasing use of ethanol. Increased ethanol production leads to less corn being used for general consumption and increased prices.
A significant factor in rising food prices is shifting consumption patterns worldwide. Asian states like China and India have recently seen a rising and increasingly powerful middle class. As developing nations expand their middle class, diets heavily dependent on staple grains tend to give way to diets rich in proteins (as are common in first world states like the U.S.). Increased overseas demand for agricultural products and livestock has helped increase commodity prices at home, driving up food prices.
The rise of the Chinese middle class has led many experts to predict that food prices will remain high in the foreseeable future. With more of the world consuming at first world levels, competition and prices will remain high as surpluses decrease.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, food prices
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Tuesday, February 22nd, 2011
Soybean sales reached their largest single day sale last week, shortly after a visit to the United States by Chinese President Hu Jintao. Private exporters agreed to sell 2.74 million tons of soybeans in the 2011-2012 marketing year, an increase from the previous sales high, 2.2 million, set in 2008.
This announcement tied into the recent visit by President Jintao, as China is the world’s largest importer of soybeans. Driven by a rising middle class appetite for pork and chicken products, fattened by soybean based feeds, China has been rapidly purchasing US soybean exports and currently imports 1 out of every four soybean rows grown within the United States.
President Jintao’s visit coincided with a series of purchase agreements between the United States and China. The recent sale, as well as news of the US-Chinese trade talks, helped lower the price of soybean, which have fallen for the March delivery, dropping roughly 19 cents, to $13.85 a bushel, according to the Chicago Board of Trade. “The market had already anticipated that we’d be seeing some sales,” said Brian Hoops, president of Midwest Market Solutions, a South Dakota commodities brokerage house.
Take advantage of the current market. In the market for a farm loan? Rates are at historic lows and Farm Plus Financial is here for you! Contact a representative at Farm Plus for more information on agriculture loans starting at 3.03%. Call 866-929-5585 or visit our website for more information.
Written by: Justin Ellison / Farm Plus Staff Writer
Tags: china, exports, hu jintao, soybean
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Friday, February 18th, 2011
Soybeans are used in a variety of items to substitute important nutrients. U.S. soybeans are in high demand around the world, especially in China. The United States Department of Agriculture predicts the United States predicts the U.S. will export 1.596 billion bushels of the oilseed in 2011.
To meet the demands of the USDA’s prediction, the United States must export 10 million bushels a week. To date China confirmed a contract for 1.13 billion bushels in 2011.
“It’s real demand,” Al Kluis, trader, analyst and charter told The Prairie Star. “They have been buying from the U.S., and odds are they will continue to buy from the U.S. China is unloading inventories, stored and all, and still, prices have been higher. They have a tremendous need for corn, soybean and bean meal. They are not buying to speculate, they are buying to consume.”
In 2010 exports were higher than expected and experts believe this trend will continue. The USDA believes Argentina will become an important as heavy rainfalls continue to destroy crops across the country.
For more information contact Farm Plus Financial at 866-929-5585 or visit us online at www.farmplusfinancial.com.
Written by: Melissa Warner / Farm Plus Staff Writer
Tags: al kluis, china, prairie star, soybeans, usda
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