Iowa is a leading exporter of soy and pork to China and other Asian markets. Many of the hogs raised here are owned by Smithfield Foods, a US subsidiary of a Chinese company. Agricultural producers should brace themselves for choppy waters ahead as China emphasizes diversifying its food supply network.
Agriculture was among the leading topics of discussion during the recent meeting of Russian leader Vladimir Putin and Chinese leader Xi Jinping. The two leaders specifically mention increasing Russian soy and pork exports to China. The agreement is mentioned prominently in Chinese and Russian propaganda streams — a “win-win,” it is claimed, for both nations as China believes the US is not a dependable trading partner, and Russia seeks hard currency for its war machine.
Russia’s ag exports to China more than doubled over the last year while US exports to China declined. Brazil has emerged as the top Chinese soy supplier after China made significant rail, road and port investments in South and Central America. Russia and China are building overland grain shipping routes through Mongolia to expedite shipping and further lessen Chinese reliance on US soy.
The US is attempting to decouple its economy from China, which poses risks for producers who have come to depend on that market built on decades of grooming. At the same time Putin and Xi announced their updated security agreement, President Biden moved to ban the import of Chinese electric vehicles. The US is also reshoring computer chip production in the race to dominate artificial intelligence.
Food and agriculture are dead-center in the conflict. China may be betting that Russia can win the eastern half of Ukraine, the breadbasket of Europe and the Middle East. So long as China depends on the US to meet its top goal of feeding its people, it will be restrained in how it can act toward Taiwan and other regional players. Xi is mindful of food production’s importance to his stability.
Russia is a long way from filling China’s belly, and China is light years away from self-sufficiency. Proclamations are cotton candy for the masses. They do signal intentions. China intends to wean itself from US foodstuffs. If TikTok can be nationalized, Xi could deduce, so can Smithfield.
Food should be top of mind as we think about security. It certainly is for China and Russia, every bit as important as oil, as the taste of mass starvations lingers. Unfortunately, we are incapable of thinking strategically about how to use agriculture to avoid conflict, and to preserve our own food security through natural resource protection. The farm bill languishes in Congress while right-wingers in the House try to torpedo food stamps. It is already a year late, and it is not clear that a new five-year farm bill will pass before the election. Meanwhile, Xi and Putin are making plans.
The Trump Administration tanked ag exports with its trade war with China. The Biden Administration continues to pursue economic decoupling while trying to repair relationships with Beijing. That’s a delicate minuette. China will continue to be a buyer of US ag commodities from sheer necessity. Running them off as a food customer, and chasing the Chinese into the arms of the Russians, isn’t good for world security or for Iowa soybean growers.
Those hunting for a criminal conspiracy for the old boiler going kaput at the Alta-Aurelia central school offices were redressed by the facts at a school board meeting last week. Supt. Denny Olhausen produced documents showing that staff had been working on the issue with plumbers with due diligence for some time. Simple as that.
Those attending the board meeting wondered why local critics had to haul someone in from Ocheyedan to air their unfounded claims. They could have looked foolish all on their own. Imagine if the superintendent had ordered up a new HVAC system for an old building that has outlived its function. There would have been calls for a grand jury investigation. As it stands, the board let the facts speak for themselves, and the foolishness was evident to all. Now, back to reading and math…
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