Sean Dengler.

Recently, I wrote about how the American soybean export program has been in the gutter due to the exodus of China from the market. As the United States steps in to provide a $20 billion currency swap, which is like a loan, to a tune of $20 billion, China bought Argentinian soybeans. Soon after, it has been announced the United States is planning to arrange funding commitments from banks and sovereign wealth funds to cover an additional $20 billion, according to NBC News.

Saving the Argentina economy at the expense of the American farmer does not make sense. American soybean farmers are already struggling with high input and low commodity prices. The common refrain from farmers is trade, not aid. This is doubly bad because it is aid but not to American farmers but to a foreign country who is one of the United States main soybean competitors.

President Trump also mentioned the United States could purchase Argentinian beef in an attempt to bring down prices for American consumers according to the AP. This is at a time when earlier this year, according to the Fence Post, the American cow herd reached its lowest level since 1950. Cattle producers have enjoyed fantastic prices. Unfortunately, the American government wants to undercut the farmer by importing beef from another country like Argentina or Brazil, who is also the main country China buys their soybeans.

Beef prices should come down to help the American consumer but using foreign beef to reduce the cost only hurts the American producer. The low beef herd is a side effect of the market showing it American beef was not worth producing leading to less cattle on the land. With market prices at or near all-time highs, this indicates the market wants more beef. This should pull in more farmers to start raising cattle like when high corn and soybean prices pull in more farmers to raise corn and soybeans. With the government thinking about importing beef, this undercuts the American cattle producer. This leaves the market to be more prone to consolidation and grow more fragile as time goes on. Like earlier this year when the Trump administration imported more eggs to help reduce egg prices, this helps the consumer. Unfortunately, it can also lead to this issue happening again more frequently in the future. When the long-term stability of American agriculture is not sustainable with many producers and processors, the cattle producer is left in a lurch.

The government can create market conditions which support American farmers, who want to raise cattle, not foreign countries. They can do this by going after the meatpacker monopolies to create competitive markets. The government can create opportunities for beginning farmers and farmers looking to integrate cattle in their operation. Going back to diversified farm operations will better support rural communities and build a more resilient food chain.

Whether it is soybeans or beef, American farmers need the American government to provide them an equal playing field with the rest of the world and with the meatpackers. When farmers are undercut by the government, this only leads to more consolidation and detrimental impacts on rural communities. Protecting American farmers is key, but these recent actions have not been in this realm. Creating opportunities for new farmers and protecting those still farming is best for American security. Relying on foreign imports is a mistake which will continue to impact American agriculture for the long term. America needs farmers.

Sean Dengler is a writer, comedian, now-retired beginning farmer, and host of the Pandaring Talk podcast who grew up on a farm between Traer and Dysart. You can reach him at sean.h.dengler@gmail.com.