POSEY CO., Ind. (WFIE) - President Donald Trump put pen to paper solidifying the agreement many farmers are hoping will be great for the economy. Some questions remain about what this agreement means for our agricultural community though.
Farmers we talked to tell us there is potential for this agreement to have a positive impact on their farms. But, they wonder what really lies in the details of this Phase One Agreement.
“I hope it goes as planned, only it needs to be bigger and we need to sell more yet,” says Posey County farmer Carl Schmitz.
The agreement is expected to more than double China’s purchases from U.S. farmers in the first year.
For farmers like Carl, it provides a sense of stability for the future of a farm, which goes back five generations.
“I hope the price of corn and soybeans go up," explains Carl. "So we can recover more of our cost of production.”
According to the agreement, no less than $12.5 billion of agricultural goods will be purchased and imported into China in 2020. A year later that number goes up to $19.5 billion.
Experts say they are already seeing the effects on day one.
“Today, China purchases 126,000-tons of soybeans from the U.S. and that was significantly higher than they have in the past,” Purdue County Extension Director Hans Schmitz explains.
If all goes as planned industry leaders say this certainly de-escalates the trade war.
“What happened today cannot be underestimated, it was significant,” says Hans.
Carl hopes to see changes on his farm sooner than later.
“Anything we can export in the agricultural sense out of this country, the better we are off as farmers,” says Carl.
Another farmer we spoke with told us he is hopeful that the tension has calmed and he is happy with the agreement saying the increase from $12.5 billion to $19.5 billion is a great jump for the economy.