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Senior Contributor

Re: Want $320/acre subsidy for beans?

I haven't followed any goods across the border and probably neither has many others on the site. How does it work?
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Senior Contributor

Re: Want $320/acre subsidy for beans?

I thought farm production subsidies were frowned on by the WTO!
Honored Advisor

Re: Want $320/acre subsidy for beans?

That was the talk back when .... someone was promoting WTO participation and international treaty laws..... "The US subsidizes too much" was the wto cry.

But the moment the agreements were made the US had to cut back on subsidies and the rest of the world started increased theirs.   China sets high prices for their production above traded world markets and Europe continued to subsidize at higher levels than we ever have.  Brazil gets to be financed by China.

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Honored Advisor

Re: Want $320/acre subsidy for beans?

Yes, I recall when China was building that huge reserve of corn (that mush spoiled) they were paying their producers the equivalent to $9/bushel, no that "no subsidy" business was pretty subjective.

 

China has what`s known as "authoritarian capitalism".  So while they make a big big big bally hoo about tariffs on US beans and pork, the so-called tariff goes into the Chinese treasury and they just plow it back to the Chinese soybean crush business in the form of a subsidy.   Meanwhile their bally hooing about the "tariff" knocks a cool $2 off the price of beans and they are laughing all the way to the bank. 

 

They`ll buy the US beans and the Chinese treasury will collect the tariff and subsequently send subsidies back to their producers, while getting a bargain.  That will work however long we get wise to them.  I would say tariff the living crap out of that $400 billion more in junk they send us and do the same back to `em in spades.  They are the one legged man in this butt kicking contest, if we only recognize it.

Veteran Advisor

Re: Want $320/acre subsidy for beans?

As someone else asked where is WTO? And what is the US trade rep doing about it?
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