Amid heated rhetoric from both Beijing and Washington, farming groups are concerned that the Phase-One Trade Agreement with China, negotiated in mid-January, might be scrapped.

In a letter to President Donald Trump, 200 organized groups, representing all sectors of the agricultural industry, urged patience and continued implementation of the agreement.  The organizations recognized the slow rate of implementation, due in part to COVID disruption during the first quarter of 2020.

The letter stated “We appreciate your initiative to complete and preserve the historic trade agreement with China in the face of uncertainty and maintaining international trade flows as a result of the devastating impact of the COVID-19 virus on the world’s economies.”  The letter to the President concluded “At this especially challenging time, rural America needs one of its greatest potential export markets for food and agricultural products.”

It is estimated that U.S. net farm cash income will decline nine percent, equivalent to $11 billion in 2020 compared to the previous year.  Economists have calculated that almost one-third of farm income in 2020 will be derived from federal grants and programs.