Guebert: Expressing our views in D.C.

One of the main themes of today, and likely all of 2020, is cautious optimism. Caution, because many questions remain in the coming months concerning trade, purchase commitments and farm income. And optimism, because new beginnings on the trade front give hope for improved export markets and farm profitability.

During the last week of February, I had the great opportunity to travel to D.C. and share some of this cautious optimism with our country’s legislators. On Feb. 26, I testified at the U.S. House of Representatives Ways and Means committee hearing.

The hearing was held to discuss the U.S.-China trade relationship, competition and the recently implemented “Phase 1” agreement. I was one of two farmers giving testimony on a panel of six.

During my testimony, I explained the importance of trade to Illinois farmers, the impacts of the trade war and reasons for optimism.

I also spoke of the reassurance I received while meeting with Chief Agricultural Negotiator Gregg Doud concerning the “Phase 1” agreement, which went into effect on Feb. 14.

The U.S.-China “Phase 1” agreement is an 86-page agreement, 27 of which relate to agriculture. Within those pages there are over 50 specific issues to be fixed and over 50 timelines going along with each of them.

Ambassador Doud spoke to some of these issues and of the enormous amount of effort it took between the two countries to hammer out a deal.

Some would say this agreement doesn’t go far enough in addressing some of those issues. To that, I would say that this deal was never intended to address all the issues. Arguably, doing so would take years — years that farm country doesn’t have as prices decline and markets shrink.

I look at this as a beginning. We are at the beginning of an exciting new chapter as we patiently await the benefits of this new trade agreement.

We must manage our expectations going forward. Illinois Farm Bureau recognizes that China is managing a deadly coronavirus outbreak and that the billions of dollars’ worth of agricultural purchases called for in the agreement have not happened yet. U.S. Department of Agriculture economists have not built those anticipated “Phase 1” sales into their export reports.

Understandably, I’ve heard concerns about China’s credibility and their history of being a rule breaker.

What’s important about this agreement — in terms of enforcement — is that it lays out specific and unique enforcement mechanisms to hold each country accountable in their promises.

If China doesn’t live up to what it’s agreed to, the United States has the right to implement tariffs proportionate to the value of whatever the issue at hand is — and the other side cannot retaliate.

One of five Illinois Farm Bureau 2020 board priorities is working to improve farm income and profitability, including continued efforts to restore and expand global trade relationships. “Phase 1” is a good start.

Getting an agreement into place has been a long time coming, and the jury is still out to see where this goes and how soon China can come back to the U.S. marketplace.

I am grateful for Ambassador Doud’s time in visiting with a group of Illinois farmers last month. Illinois Farm Bureau extends its thanks to Rep. Darin LaHood, R-Dunlap, for the opportunity to testify during the committee hearing.

It was a great honor for me to express the views of our membership about how this China "Phase 1" trade deal impacts them and what they see going forward. My full testimony is available at www.ilfb.org/media.

As thoughts of spring planting become top of mind, I want to close with a reminder for our Illinois farmers to stay safe. Don’t take risks you don’t have to take.

Grain bin safety, especially with the condition the grain is in this year, is a high priority. If entry is unavoidable, please have an observer stationed outside to get help immediately if needed. Even one accident is one too many.

Richard Guebert Jr. is the president of Illinois Farm Bureau. His family farm in Randolph County grows corn, soybeans and wheat.