Between wildfires, drought, a trade war and the COVID-19 pandemic, the last few years have been hard on California farmers. But recent research by agricultural economists suggests that economic losses to California agriculture from recent supply chain disruptions may have an even greater economic impact.

In the wake of retaliatory tariffs targeted at U.S. agricultural goods, USDA paid out a total of $23 billion to farmers under the 2019 and 2019 Market Facilitation Program. In further evaluating the program, a Government Accountability Office report reveals that USDA picked winners and losers in how it allocated trade damage payments to farmers.

GAO estimated that, for example, total 2019 MFP payments to corn producers were approximately $3 billion more than USDA’s estimate of trade damage to corn, while payments to soybeans, sorghum and cotton producers were lower than their estimated trade damages.

The U.S. is lagging behind competitors in reducing global trade barriers and the Biden administration’s trade policy does not look to alter that trajectory, according to a new analysis from the Corn Refiners Association and unveiled during a recent roundtable virtual discussion hosted by the Farmers for Free Trade. The findings, which track trade agreement since 2010, show that rival trading nations have outpaced the U.S. in cutting bilateral and multilateral trade arrangements.

Earlier this week, in its Grain: Worlds Market and Trade report, the USDA’s Foreign Agricultural Service (FAS) stated that, “China coarse grain imports for 2020/21 are now complete.

Based on China Customs’ data, combined imports of corn, sorghum, and barley from the world totaled 50.2 million tons, doubling the previous record set in 2014/15.

Over the weekend, the United States and European Union agreed to suspend the tariffs on steel and aluminum and to start the work of facilitating negotiations with like-minded countries to reduce steel and aluminum overcapacity and carbon intensity. The agreement also reopens the door for U.S. agriculture exports impacted by retaliatory tariffs. But the ag equipment sector remains challenged.

More than 95% of the world’s consumers live outside the United States. The growth opportunities are endless for U.S. agriculture. But it’s necessary to understand the value of international trade and how more Americans can take advantage of it, according to the founding members of the newly launched Agriculture Trade Education Council.

Agriculture leaders from across major food and ag associations announced the formation of the ATEC, a 501 c (3) non-profit that will be a resource for education on the value of agricultural trade policies, practices and structures.

Key ag leaders shared with the Department of Transportation that the most problematic supply chain issues for the ag industry include transportation costs, labor availability, rising energy costs and challenges with obtaining inputs and products for the ag sector.

In response to President Joe Biden’s Feb. 24, 2021, Executive Order on America’s Supply Chains, key participants in the agricultural industry detailed in two letters the key concerns for an industry impacted on multiple levels, one signed by the Ag CEO Council of the 17 top ag groups as well as another written on behalf of the Agricultural Transportation Working Group

Bloomberg News reported this week that, “Chinese authorities are imposing new hurdles for fertilizer exporters amid growing concerns over surging power prices and food production, a move that could worsen a global price shock and food inflation.

“Some Chinese fertilizer cargoes ready to be shipped are being held up by local authorities for additional checks or to obtain new export certificates, according to people familiar with the matter. The supplies will either end up being sold on the domestic market or face delays in being exported, said the people, who asked not to be named as they are not authorized to speak on the matter

The current shipping crisis has been an ongoing fiasco for well over a year and it continues to get worse. Shipping containers to load soybeans and other commodities have been elusive, especially for many ag shippers, as containers were returned to China empty. Railroad yards have been backlogged with containers for months.

Perhaps the most stunning image of this entire mess is full container ships anchored off the Ports of Los Angeles and Long Beach, waiting to berth and unload their precious cargo. Terminals are packed full of both loaded import containers and empty containers waiting to be loaded onto vessels or with export goods.