US President Trump enjoys widespread support among US farmers. Nevertheless, in his campaign he implements some controversial plans that have a negative impact on the agricultural sector. Opponent Joe Biden seems to score better on certain points, but the question is whether he can convince the agricultural sector with this.
Despite the fact that many agricultural entrepreneurs are satisfied with the current president, there are still some issues standing in the way. For example, Trump's policies on international trade and biofuels for farmers are having an undesired effect on crop prices and international demand for U.S. agricultural products.
Trade Setbacks
Trump's trade deals are among the most discussed issues. By imposing sky-high tariffs on, for example, Chinese goods, the trade war in 2018 caused American farmers to lose billions in sales. This loss of income is hitting agriculture hard, especially since the sector has already been hit hard by the effects of extreme weather and is struggling with a worldwide abundance of soybeans and grain, which has kept prices low.
Trump then promised better times with the introduction of a $30 billion relief fund for affected farmers. He also drew up the 'Phase 1' trade agreement with China, which has so far not led to the agreed export figures. Despite this, the prices of soybeans and maize are benefiting from the increased imports from China.
Biofuels and the environment
When it comes to biofuels, the president has both victories and setbacks to his name. Corn growers feel the direct effects of the policy. The Trump administration quadrupled the number of oil refineries that were exempted from diluting their gasoline with ethanol. As a result, the demand for maize decreased and maize prices remained low.
In addition, the president made sure that the export volume of biofuels was expanded, that Brazil does not apply import tariffs on American biofuels and he rejected a large number of applications from refineries that also want exemptions on diluting gasoline with ethanol.
In addition to biofuels, Trump is not very careful with environmental regulations. Under his rule, several steps have been taken to weaken or reverse these rules. Among other things, the president withdrew the measure that ensured that the living standard of organic livestock and poultry was improved, while this was positively received by organic livestock and poultry farmers.
Biden's Opposition
Presidential candidate Joe Biden has voiced opposition on many fronts. He argues for freer international trade, he has tackled the problem with biofuels and he promises to make agriculture more environmentally friendly. When it comes to international trade, Biden wants to push for agreements that American farmers themselves support. He also wants to end the 'artificial trade war' between the US and the European Union and restore trade.
Biden attacks Trump's regulations the most when it comes to environmental regulations. With Biden at the helm, there are likely to be major shifts on the agenda. For example, he has proposed to achieve net zero emissions and to introduce agricultural subsidies based on environmentally friendly investments on farms. The presidential candidate also wants to promote the use of cleaner energy sources, which could open a door for more grain-based biofuels.
For biofuels, Biden wants to end the exemptions granted to refineries, so that more ethanol has to be mixed in. Still, some are questioning how this plan fits into his long-term vision, as electric vehicles are on the rise. This plan would push vehicles running on biofuels into the background. Critics call it a short-term solution.
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