The U.S. Senate has overwhelmingly approved the U.S. Mexico Canada Agreement, a new trade deal to replace NAFTA. President Trump has been calling for it since the campaign, and it's now headed for his desk.
While much of this deal is focused on manufacturing, this week and this deal is re-establishing international markets for North Dakotan farmers.
Just one hour before Senate heard the articles of Impeachment, the Senate forwarded the USMCA with overwhelming support. And farmers see it as a relief after bad weather and bad prices.
"All these things kinda led to a year of really tough scenario for a lot of people. We're trying to bounce back now and see here looking into 2020 things will get better and move on from here,” Baldwin farmer Dean Goetz said.
The passing comes just one day after a different trade deal was ratified; Phase One of the China Trade Agreement signing in ceremony.
In the short term, this deal doesn't affect much. China has switched to other regions for ag products during OUR winter months. Meaning, farmers will wait to reap the benefits.
Eugene: "As far as a farmer is concerned, their trade deals are now done. It's a matter of them being implemented going forward in the future, which gives us a better footing as far as sales are concerned,” Heartland Investor Services President Eugene Graner said.
While many hope deals like these will raise commodity prices, those remain market forces. What these deals do, at least for farmers, is add certainty in what has been an uncertain landscape.
That deal with China includes the purchase of 40-50 billion dollars of agricultural goods. As far as the USMCA, the President is expected to sign it in the coming days. North Dakota's senators have been calling for its passing for some time now.
"This is good because it will help open more trade with Canada and Mexico for our ag producers and for our energy industry,” Sen. Kevin Cramer, R-N.D., said.
Sen. John Hoeven, R-N.D., added, “Senator Kevin Cramer added, "Its implementation will stimulate the economy, create new jobs, and increase exports with two of North Dakota's top trading partners."