Local farmer makes trip to China

BY ANNA HERKAMP
Commercial-News

DANVILLE April 17, 2009 09:18 pm

— A recent journey to China by Illinois farmers brought about some conversations that may expose potential flaws in President Obama’s stimulus plan.
Mike Marron, a Fithian farmer, took part in the Illinois Farm Bureau Market Study Tour in early March. The 10-day trip took area producers to international markets, where a significant percentage of United States commodities are purchased.
Marron was one of 14 farmers from Illinois — the only one from Vermilion County — who went on the trip. The group was ushered to various agricultural companies by the USDA Foreign Agricultural Service. They visited a Chinese dairy, a fishery and a soybean-crushing facility where imported American soybeans are processed.
China’s economy has grown rapidly, making it an international trading force whose importance as an importer will continue to grow in coming years.
“There is a lot of prosperity,” Marron said.
The Chinese diet is becoming more widespread, and demands for more western foods are growing, Marron added.
The market tour’s aim is to help local growers learn more about overseas markets.
“We wanted to see what we could do to help them,” he said.
“We want to let our legislators know how to help open up markets for us in China.”
According to the Foreign Agricultural Service’s Web site, China is the fifth largest market in the world for U.S. ag products.
“Almost half of our corn and nearly half of our soybeans are exported out of the country, so it’s important for local producers to have a better understanding of what their customers are looking for,” said Tom Fricke, information officer with the Vermilion County Farm Bureau.
Marron and another farmer from Champaign County recently spoke at a regional Farm Bureau meeting and are in talks with U.S. representatives about the importance of maintaining mutually beneficial trade agreements with China.
At the U.S. embassy in Beijing, the delegation met with Chinese business representatives, who voiced their concerns over protectionist attitudes the U.S. could be imposing on trade agreements.
Portions of the stimulus package that call for “buy American” provisions could make international commodities training difficult, Marron said.
The Clinton and Bush administrations’ policies had been friendlier to free trade, he added.
“What one (government) department can decide to do might affect what other departments are negotiating with in a foreign country,” Fricke explained.
China isn’t afraid of making political statements about American trade policies they disagree with. For example, the country can hold up shipments of soybeans from being imported into China.
Because China is one of the largest U.S. soybean importers, it could be a big problem, he explained.
“If we do something that limits trade, it adversely affects the markets,” Marron said.
The U.S. isn’t the only world player in soybean production.
Brazil is also big player in the world soybean market.
“If they want to make a political statement, they’ll buy Brazil’s (soybeans),” he said. “It affects (U.S.) farmers’ bottom line.”
The country’s growth is going to create big opportunities for American agriculture, he said, so friendly trade relations will be crucial in coming years.
Most of China’s 200 million farms — which grow a lot of corn — are only about 1.2 acres.
“They’ve maxed out all of their arable land, so they have to import most of their food,” he added.
Besides lessons in world economics, the market trade tour group also had a chance to do some sight-seeing.
They visited the Great Wall, the 2008 Olympics sites and other places of interest like Tiananmen Square.
The food was a little different, though.
Marron said fish lip soup and fried beef stomach were some of the more exotic dishes they sampled.
For now, though, as Marron anticipates the 2009 planting season, he’s learned some things that make a difference in his operation in coming years.
“It hasn’t translated to any decisions for the field for this year,” he said.
“I always tend to grow more corn than soybeans, but it’s opened up my eyes to the possibilities for (increased) soybean production.”

Copyright © 1999-2008 cnhi, inc.