FROM THE DESK OF REPRESENTATIVE DE BOEF February 23, 2012
Big Night for Iowa Last Wednesday night was one of the highlights of my legislative career. Iowa played host to China’s incoming President, Xi Jinping. He had visited Iowa 27 years ago as a Hebei Province official. He now returned to our state as a new leader of the largest country in the world, a nation of 1.2 billion people. When Governor Branstad spoke about this visit with the Vice-President of China, he compared it to the visit from Pope John Paul ll In 1979. This was a big deal! It had added significance to me because my husband and I went on the trade delegation to China last June. Because Hebei Province is Iowa’s sister state, the first place we stopped when we arrived in China, was Shigiazhuag, Des Moines sister city. The rotunda was resplendent with linen, and center pieces of glass globes, signifying the International focus of the event. The reception and dinner emphasized Iowa foods. Iowa beers and wines were served exclusively. A bacon and tomato hors d’oeuvres was especially good. The main course of the dinner included beef and pork tenderloins served with delicious sauces, accompanied by turnips and a twice baked potato. A small honey-filled corn muffin and a generous wedge of Maytag Blue Cheese was dessert. This event was one of many that President XI and his trade delegation were to attend across the United States. Members of his trade delegation included many who were involved in agricultural activities… be it production agriculture, importing grains or food processing…..China’s agribusiness was in the Capitol that night. Seated at my table was Wendy Zhang, who was one of the interpreters when I was in China. It was great to see her again! One of the people I saw there, who I also met in China was Kit Spangler, formerly of Hillsboro. Kit was a dairy farmer then, and was one of the acquaintances I met in China. He told me that while he was still on the farm, he received his Masters in Asian studies from the University of Iowa. “I studied three years of Chinese, as well as Chinese History. Interestingly enough, part of my research was on China’s agricultural reforms. One of the areas which came up in my research was Zhengding County in Hebei. That is where Xi Jinping was a government official. I served as Chair of the Iowa Hebei Committee in the 1990’s and worked closely with Sara Lande, whom Xi Jinping visited 27 years ago, and later spent time in her home last week. “ Kit sells agricultural equipment to China. He works for a company called Ten Square International Incorporated. The company represents about ten different “short-line” companies. Iowa companies that they represent include Haggie, Ag Leader, and Montag. It was great to see Iowa exporting manufactured products made by Iowa labor to China. They have four offices in China, including Guangzhou, Nanjing, Harbin, and Wulumuqui. Kit travels to China about four or five times a year. I visited with Kit about what it was like to be farming in China. He told me that western style mechanization was being adopted there, and that movement of rural population to the urban areas where manufacturing jobs are plentiful, is allowing for the consolidation of farm land, making further mechanization possible. I asked him what the soil was like over there and he replied that in Hebei Province in northeast China, the soil is much like Iowa’s. In fact, he said it is some of the finest soil in the world. He told me that John Deere sold $60 million worth of farm equipment in Hebei Province last year. One of the farms he calls on consists of 60,000 acres.
When we were in China, we visited a big Farm Show. We saw large and small farm equipment, often common names such as Case, & John Deere. We observed machinery that look like John Deere, even the logo looked like John Deere, but it was a knock-off. My husband observed some of the parts were old John Deere parts. When we visited a Pioneer plant in the Beijing area, we were told that R & D in China does not mean research and development. It means rip-off & distribute! We also had the privilege of visiting the Ver Meer plant in Beijing. A member of our church was working in China regularly, so we knew we would see him there. We were very surprised to get off the bus to see one other gentleman from our church was also vising the Ver Meer plant during that time! One of the interesting things we saw was a truck load of dogs in crates as we traveled the roadways. We assume they were not headed to the dog-pound! Made us wonder what that unknown meat that was we ate that day! Iowa’s economic future with China appears to be bright. An emerging Chinese middleclass would increase purchasing power, which will drive domestic consumption of manufactured goods, which in turn will drive non-farm employment. Chinese diets will continue to improve as the population continues to prosper. Meat consumption will be on the increase. All this will require additional agricultural products from the United States, especially Iowa. China now consumes 20 percent of Iowa’s corn production, 60 percent of U.S. soybean production, exports of beef and pork continues to increase to China. Economic forecasts indicate that if these trends continue, China’s demand for corn will increase six fold. That is a LOT of corn. Earlier, on Wednesday afternoon, China had signed contracts for $4.5 billion worth of soybeans to be delivered over the next year. The new contract increases sales so that now 25% of our Iowa soybeans are sold in China. It is our hope that when Iowa companies go to China to sell their goods, they will be remembered for that night when China met Iowa. It is our hope that they remember the sincerity and honesty of Iowa’s people. It is our hope, that because of the impressions that Iowans made during Xi Jinping’s visit, that perhaps Iowa companies may move to the ”top of the list” of trading partners. Visitors at the capitol this week: Gary & Linda Shultz,of Iowa County with American Cancer Society, Mark Vavroch with Powesheik County Conservation Board, my son Eric DeBoef, a dentist, and University of IA dental students. Director Andy Hora, Joe Armstrong, Chris Prizler, Craig Stallman, Doug Boland, and Tom Head with Iowa & Powesheik Co. Farm Bureau. Ty Feigenspan, a homeschooled student from rural Johnson County. I am always happy to deal with any requests you may have or any input you may offer! Please contact me at 515-281-3221 or
[email protected].
