Iowa farmers cheer for 'old friend' Xi

For many Iowans, news that Xi Jinping was elected general secretary of the Communist Party of China's Central Committee earlier this month was exciting, though not really surprising.

"I think Mr Xi will make a very good president and leader for the Chinese people. He seems to be a caring, modern, open-minded and very intelligent person - someone who listens and understands the interconnectedness of the global economy and its importance," said Grant Kimberley, whose family farm in Maxwell - smack-dab in the middle of the rural state - Xi visited in February.

"He sees that opportunities to grow China-US economic ties would benefit both countries," said the 36-year-old farmer, who has been to China five times. "He also understands the importance of agricultural trade with Iowa and the US to ensure a safe and stable supply of food for the Chinese people, and that it can serve as the foundation for a positive relationship between the two countries.

Iowa is a leading US state for producing soybeans and corn, and thus a major trade partner of China's. In 2010, the state's exports to China hit $599 million, about 12 times more than in 2000, according to US Census data. China is Iowa's fourth-biggest export market, and the state imported about $1 billion in goods from the Asian country in 2010.

Karey Claghorn, chief operating officer of the Iowa Soybean Association, said up to 30 percent of the state's soybean crop is shipped to China every year.

"For the most part, it's whole beans; there is some [soybean] meal that goes to China," she said. "China has a very big soybean-crushing industry. They prefer now to purchase whole beans and crush their own for their livestock industry."

Claghorn's trade association organizes soybean-field tours for visitors from China.

"Chinese buyers send people here to look at the crop, estimate the crop or check on soybeans and their quality," she explained.

The soybean association also organizes trade trips to China, uniting farmers with buyers.

Ron Heck, a director of the association and owner of a 4,000-acre (1,619-hectare) Iowa farm, pointed to rapid growth in soybean exports to China over the past decade.

"Today soybeans are the largest commodity export for the United States, and China is by far the largest customer," he said. "It's growing rapidly partly because the Chinese government has decided that corn, rice and wheat are more important products to grow in China. So China has incentive programs for their farmers to grow corn, wheat or rice, but not soybeans.

"We export over half of our crop, and China takes about 60 percent of that. It's a very good trading relationship, because the United States buys a lot of manufactured things from China," Heck said. "It helps our balance of trade."

Iowa's other major exports to China are corn, machinery and processed foods.

The Iowa-China connection reached its apex in February when Xi, as vice-president, returned to the state 27 years after his first visit, as a Hebei provincial government official on an agricultural study tour.

In a speech to a US-China agriculture symposium in Des Moines, the state capital, the man who had spent seven years working on a farm in China said farmers and agriculture "hold a special place in my heart." Xi called for increased bilateral cooperation in trade, science and food security.

Governor Terry Branstad was halfway through his first term in office when he met Xi in 1985. The future Chinese leader was heading a delegation of farming experts from Hebei, which had a sister-state relationship with Iowa's. In February, Branstad - who took over again as governor in early 2011 after a 12-year hiatus - received his "old friend" again.

In an interview with CCTV America this month, Branstad said: "I'm excited about Xi Jinping coming into the leadership position. Iowa can play a role in helping improve relations between the two countries and, hopefully, build on the great expansion we've built in trade."

The Republican governor sees Xi as "outgoing" and "personable". "He's been real progressive in terms of really trying to move China in a more open, market-driven approach. All of that is going to be very positive."

"The fact that he came to Iowa demonstrated his commitment to working with the US," Branstad said. "We have USDA and China meeting on food and agriculture in Des Moines. I think that is an indication that he's the kind of leader that we can build a more collaborative relationship with for the future. I think that's good for world peace and for economic prosperity not only in both of our countries but for other countries in the world as well."

Branstad had compared Xi's most recent trip to Pope John Paul II's 1979 visit to the Living History Farm in Urbandale and former Soviet leader Nikita Khrushchev's 1959 tour of Sukup, a manufacturing company in Sheffield. But he called the Chinese vice-president's stop "far and away the biggest event" for Iowa's "economic future" during any of his five terms as governor.

During Xi's visit, China signed contracts to buy 8.62 million metric tons of soybeans from the US, worth about $4.3 billion.

In his toast welcoming Xi in February, Branstad also mentioned biotechnology, advanced manufacturing, food processing and financial services as areas in which Iowa and China could establish partnerships.

According to the US Department of Agriculture, China became the top market for US agricultural goods last year, buying $20 billion on exports of soybeans, cotton and other commodities. The trade supports over 160,000 American jobs.

The Kimberleys, who have fond memories of Xi's visit to their five-generation-old family farm, said trade opportunities and overall US-China relations are likely to get better.

"I believe it is a positive for both Iowa and China. China is a major trading partner for Iowa, which helps our economy and people," said Grant Kimberley, who is also head of market development for the Iowa Soybean Association.

"We can also provide products and services for the benefit of China. Iowa is the leading producer of soybeans, corn pork and eggs among many other things, and is positioned to help provide food to the Chinese people as a reliable and trusted partner."

Driven by what Kimberley sees as mutual respect and admiration between Americans and Chinese, "there are many things we can accomplish to help bring food, economic and political stability to the world".

"While there will probably be occasional trade or political challenges or disputes, both countries know they need to lead the world and are the keys to providing stability to the world economy. Therefore we can always work out whatever challenges or issues that may arise," he said.

US Agriculture Secretary Tom Vilsack, who served as Iowa governor from 1999 to 2007, said: "The expertise, technical know-how, research and combined will of our two nations can go a long way to filling empty stomachs and improve incomes and economies around the world."

In March, a month after Xi's latest visit, Iowa officials again headed to China on a trade trip aimed at strengthening ties at the state-province level.

Branstad is planning to be the first US governor to meet Xi in China after he officially becomes president in March 2013.