While Donald Trump creates markets and geopolitical leverage for Russia by waging costly economic war on our closest allies, pork farmers are bringing home less bacon. Iowa pork producers are out $560 million, with worse ahead:
Iowa pork producers already dealing with a 25 percent tariff on U.S. pork exports to China could face another trade hit, with Mexico considering a 20 percent tariff on hams and pork shoulders.
Growing trade worries have cut pork prices in recent weeks, costing Iowa producers about $560 million, said Dermot Hayes, an Iowa State University economist.
Mexico is the largest export market for U.S. pork, based on volume.
Mexico bought $1.5 billion of U.S. pork last year, followed by China-Hong Kong at nearly $1.1 billion.
The tariffs are “potentially devastating news for Iowa’s pig farmers and the rural Iowa economy,” said Gregg Hora, president of the Iowa Pork Producers Association [Donnelle Eller, “Trade War: Mexico Pork Tariff Threats Push Iowa Losses to $560 Million,” Des Moines Register, 2018.06.01].
Dr. Hayes calculates that the losses on pork futures since March 1 are $18 per piggy, or $2.2 billion nationwide, and that was mostly from speculation about China’s retaliation. Retaliation from Mexico, which buys even more of our pork than China, will make things worse, particularly for voters in Trumplandia.
By the way, South Dakota exported a larger percentage of its pork to Mexico than Iowa did in 2017:
Ham might get a little cheaper here, but only until producers react to the Trump-narrowed market by cutting pork production, meaning that if tariffs stick around, supply goes down and consumer prices go up.
And when Americans do less business with the world and pay more for their groceries, Vladimir Putin smiles at opportunity for Mother Russia.
Not surprising, Trump’s trade wars have impacted red state farmers the most.
Yet our rural counties are being overrun by applications for contract hog operations from the likes of Pipestone Systems and SunTerra.
Guess the over 700 impaired waterways and push for a moratorium in Iowa is making them nervous for new ground.
will farmers put 2 and 2 together? If not it’s hard to feel sorry for them
Rudy Ghouliana says trump can pardon himself, so that means that trump is guilty or else why would he want to pardon himself? Time to rewrite the Farm Bill while the getting is good.
Pork prices haven’t dropped. They are now their highest in two years: https://www.investing.com/commodities/lean-hogs-historical-data
Nice disclaimer, tool, Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), cryptocurrencies, and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
No one hopes for lower pork prices on this blog. So if they are high, and the producers are getting paid for their product, good deal. Something tells me though, that this cannot last by domestic consumption only.
https://www.agupdate.com/markets/market_news/pork-producers-face-pain-from-mexico-tariff-retaliation-plan/article_c1053ecc-6520-11e8-866b-e33ffcd19e95.html
Hog markets rattled and futures are down.
pres Animal Sh*thole pleasing his hero:
“And when Americans do less business with the world and pay more for their groceries, Vladimir Putin smiles at opportunity for Mother Russia.”
And there we have it.
Ok, you cry because you are told hog prices are dropping. I provide you evidence from an independent source they are not dropping. You conclude the truth can’t be true. You are all idiots. Sorry mike don’t cut yourself.
I provide you evidence from an independent source they are not dropping
OldTwoHoler, you are full of it.
OldSarg, did you read the article? The Iowa economist said hog futures have dropped. He calculated the economic impact from those futures, which represent the wisdom of countless buyers in the marketplace. And then, having failed to refute the analysis provided, you end your comment with needless insults. Try responding civilly to the information and arguments presented.
Just like to point out that there are no pork “farmers” left anyway. There are only vertical integrator’s contracting to have a slave laborer produce their pork for them. Of course there are farmers that feel they must have a “job” producing that pork so they are damaged a bit by integrator’s not expanding quite as fast.
The farmer “pork” producer is gone as are the farmer “broiler” and “laying” hen operations. Being joined by the mega dairy’s as well.
Para trabajar en la industria porcina es necesario comunicarse en Español. No muchos agricultores de Iowa posess esta capacidad.