Make It or Break It: Proposed port fees on Chinese-built ships raises concerns among farmers

The U.S. Trade Representative is considering extra fees on Chinese-built ships. Soy groups are concerned, saying it will take a lot of money out of the hands of their farmers.

Mike Steenhoek with the Soy Transportation Coalition says “Made in America” runs in a farmer’s blood, but warns these ship fees could make it or break it for most.

“Things like barges and tow boats, dredges, those all have to be built in the United States. There’s a law that that stipulates that, it’s called the Jones Act, and we were so we’ve been long supportive of that. So we have this track record of supporting the domestic ship building industry. We think that certainly has room to improve over time, and we applaud the administration for pursuing that. Again, it’s all about the time horizon for execution and doing it in a way that doesn’t harm other made-in-America industries.”

Steenhoek says if these fees go through, ships going from the Pacific Northwest to China could see costs increase up to nearly $12.30 a bushel, which would ultimately get passed on to the farmer. He says if farmers then passed those costs to consumers, buyers would find sellers in places like Brazil or Argentina.

LATEST STORIES BY THIS AUTHOR:

Financial matters in farming can be frustratingly complicated, especially when it comes to the process of filing for bankruptcy. That is the topic tackled in today’s blog post by Farm-Legal Expert Roger A. McEowen—the definition of “insolvency” for purposes of the exclusion from income of CODI.
The “farm products rule,” and the 1985 Farm Bill modification and its application – that is the topic of today’s blog post from Agri-Legal Expert Roger McEowen.
Now that Washington lawmakers have passed a 45-day stopgap, they have some breathing room to work through some hot-button topics like the high cost of the upcoming Farm Bill, which is due in large part to the funding necessary to support the Nutrition Title.
A recent news story involving a group of farmers in Mississippi reveals the potential downside of selling grain under a deferred payment contract. The risk of deferred payment ag commodity sales and what can be done for protection—that is the topic of today’s blog post.
Recently, a bank in Texas got confused on the financing rules governing agricultural crops and lost its security interest as a result. Ag financing and priority rules among competing security interests—that is the topic of today’s post.