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Analysis Elections USA

What Joe Biden has in store for American farmers

7 November 2020 - Wouter Baan - 11 comments

Joe Biden appears to have almost certainly won the US election and will expel Donald Trump from the White House in January. Although the current president is still very much against it. It is clear that political policy in the US with Biden will change color in the coming years. But what does the new president want with agriculture? Big combines and fat John Deere's don't seem to fit the Democrats.

To start at the beginning, who is Joe Biden anyway? Judging by his age (77), a man brimming with political experience, he had been vice president for 8 years under Obama. Before that, he was a senator for the state of Delaware for decades. Biden is by no means a newcomer. Biden has also been through a lot on a personal level, including his wife and son.

While Trump is bursting with bravado, Biden is more of a moderate man. A tad boring even, so that the contrast with its predecessor will be great in the coming years. Biden will probably be less likely to hit the headlines and responding via Twitter is also less his thing. Unlike Trump, Biden has not made agriculture the focus of his proposed policy. In itself logical, because his voters are mainly in and around the major cities of America. Yet Biden, he points out, wants above all to be a president of all Americans. And so also from the farmers in the Midwest, the agricultural heart of the US that once again turned red on the electoral map.

Vital countryside
How will Biden color agricultural policy? On his website he states that a healthy and vibrant 'Rural America' is important for the success of the country. The Biden-Harris tandem wants to stand up for the interests of farmers, fishers and ranchers. However, this is quite common language that friend and foe alike will agree with. Biden is also committed to employment. Not only in the cities, but especially in the countryside to offer young people economic prospects.

During his campaign, Biden sneered at Trump, noting that rural American jobs have declined in his tenure, while Trump promised the opposite 4 years ago. Biden also pledged to modernize rural America. Every American, including those in rural areas, should have access to the 5G network. Furthermore, the American countryside should above all also be a place for outdoor sports and relaxation. Something many Americans are sensitive to.

Short chains and young farmers
Although agriculture was by no means the spearhead of Biden's campaign, a number of points of view are well known. For example, he is jokingly not a fan of large combines and other machine violence, something Trump finds wonderful. Biden's policy is at odds with the large-scale nature of American agriculture. Biden wants to help family farmers survive in times when agricultural markets are rapidly consolidating and is therefore focusing on short chains.

Biden calls the short chains 'regional food systems'. In these chains, farmers deliver directly to schools, hospitals and other government institutions. This should improve the farmer's position in the chain and the negotiating position. This sounds nice on paper, but the majority of agricultural production the US sells on the world market. Biden also makes a case for young, start-up farmers who, according to him, are having a hard time joining. A concrete plan of his is to double the starting credit from the government for this target group to an amount of $100.000, as a helping hand.

End of trade wars?
Then there are the positions that indirectly rub against agriculture. Take the climate, for example. Biden indicates that he is behind the Paris climate agreement, where Trump distanced himself from it. You can therefore set the clock to the fact that Biden wants to make agriculture greener. The democrat wants to use technology to reduce emissions and fix carbon in the soil, according to his plans. By the way, Joe Biden has indicated during the campaign that he will not conform to the European Green Deal, but he may have done this in order not to deter floating voters. 

On the economic front, Biden wants to be less protectionist than the incumbent president. The trade wars, which characterize Trump's policies, don't seem to be up his alley. On the contrary, he wants to strengthen ties with foreign countries, although 'America first' could also count on support from the democratic corner. The trade wars that Trump waged in recent years with China, neighboring Canada and Europe, among other things, hit American grain growers and livestock farmers hard in their pockets. He compensated for the damage with various support programs to ease the pain. As a result, many farmers saw a second Trump term in office just fine, but that party is cancelled.

Lame duck
Now that Biden has almost won, Trump is entering the so-called 'Lame Duck period'. This is the period between the election results and the inauguration of the new president in January. Usually the incumbent president does not make any major changes during that period. Knowing Trump, he will not leave quietly, and it is also questionable whether he will accept his defeat. Biden looks more like a gray mouse compared to Trump's whims, but US policy will change under his leadership. Albeit in a moderate tone and somewhat less via Twitter. 

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Wouter Job

Wouter Baan is Head of Meat & Dairy at BoerenbusinessAt DCA Market Intelligence, he focuses on dairy, pork, and meat markets. He also monitors (business) developments within agribusiness and interviews CEOs and policymakers.
Comments
11 comments
Roy 7 November 2020
This is in response to it Boerenbusiness article:
[url = https: // www.boerenbusiness.nl/agribusiness/artikel/10889943/wat-joe-biden-in-petto-has-voor-americaanse-boeren]What Joe Biden has in store for American farmers[/url]
I haven't read anywhere that Biden won.
Harm 7 November 2020
Nice article, however: TEXT:

Biden has not made agriculture the spearhead of his proposed policy. It makes sense, because his voters are predominantly in and around America's major cities..?

What I don't understand is that it would make sense for politicians to make policy solely for voters and not reality. I would think it normal for a leader to talk about his country and not about voters.

In fact, this is extremely reprehensible (see damage to our politicians by governing with unattainable, elusive standards and with subsidies to "change the climate back" win votes).
hans 8 November 2020
Harm, it's not that hard, is it?

Biden's voters are in the big cities, people far from reality, often civil servants and office workers from the big companies.
They want cheap everyday food to save money for luxury.

To meet these people, farmers have to supply cheaply, so some subsidies are promised here and there to keep the farmers alive.

An additional advantage is that you can attach requirements to those subsidies. E.g. less use of crop protection products or CO2 capture.

So it is a policy for everyone, only slightly better for one, and the other has to make do with it. Just like in the EU.
hans 8 November 2020
"Now that Biden has almost won, Trump enters the so-called 'Lame Duck period'. This is the period between the election results and the inauguration of the new president in January. Usually the incumbent president no longer makes major changes during this period. ."

One thing Trump should do anyway, to prevent an imminent political assassination under Biden:

GRACE TO JULIAN ASSANGE!


Subscriber
Skirt 8 November 2020
Biden is only for 4 years given his age, is a civil servant pursang so will not put much out of the straw in the next 4 years.
common sense 15 November 2020
It's just waiting for the day that decisiveness is needed, now that the Lion has gone and the sweet will be poison to Biden's voters.
This man is our politics in person: cultural genocide but without dictator Europe: a sheep for multicultural wolves

just wait for the first war
Subscriber
jk 15 November 2020
wrote:
the usa hasn't been this close to a civil war under trump in a long time, so what do you mean?
hans 15 November 2020
jk wrote:
wrote:
the usa hasn't been this close to a civil war under trump in a long time, so what do you mean?
Then you see what the Deep State, through incendiary MSM, can, and certainly will not fail to, cause:

WAR, certainly outside, if not then within its own borders.
bblogic 20 November 2020
Just watched Giuliani's press conference. If even a small fraction of the allegations are true, Biden is over.
Fraud on a massive scale in various Democratic cities.

https://www.zerohedge.com/political/watch-live-trump-campaign-path-victory-press-briefing
Subscriber
Dirk 20 November 2020
bblogic wrote:
Just watched Giuliani's press conference. If even a small fraction of the allegations are true, Biden is over.
Fraud on a massive scale in various Democratic cities.

https://www.zerohedge.com/political/watch-live-trump-campaign-path-victory-press-briefing
Going to bed earlier, that makes a lot of difference
hans 20 November 2020
Dirk, lesson from your mother?

Whether you get a tight squeeze by the pastor, the pastor or the king, yes and amen, and go to bed quickly!
You can no longer respond.

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