Direct and indirect benefits to corn farmers from Phase One
January 24, 2020 By Mark Dorenkamp Filed Under: Crops, Minnesota, News
Corn farmers are wondering about the direct and indirect
benefits of the phase one trade agreement with China.
Tom Haag of Minnesota, who serves on the National Corn Growers Board of Directors, tells Brownfield it’s okay that China has not been a huge market for U.S. corn.
“The thing about it is all our ag commodities are kind of grouped together where if one goes up, the other ones follow. If we can get China to get back into buying some of our soybeans again, that market is going to go up, (then) corn will go up. It’s a win-win situation.”
And he points out China was the third-largest importer of U.S. ethanol prior to the trade war.
“They know they have issues over there to try and clean up their air in that country. They found out ethanol (could help) and started using it. And at one time they had it mandated that they wanted to be at 10 percent (nationwide).”
There are reports China will delay implementation of an E10 mandate.
Haag says the Chinese also need dried distillers grains, a co-product of corn, as the country looks to rebuild a domestic hog herd decimated by African swine fever.
Brownfield interviewed Haag at the 2020 MN Ag Expo in Mankato, Minnesota Thursday.
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