The U.S. Department of Agriculture reports that a World Trade Organization panel found that China skewed commodities trading by providing excessive government support to grain producers. 

China’s market price support policy artificially raises Chinese prices for grains above market levels, creating incentives for increased Chinese production of agricultural products and reduced imports, the USDA reported. 

The USDA called the ruling a “significant victory” for U.S. ag interests. Iowa is the top U.S. producer of corn and ranks second in soybean production. 

“The United States proved that China for years provided government support for its grain producers far in excess of the levels China agreed to when it joined the WTO. China’s excessive support limits opportunities for U.S. farmers to export their world-class products to China. We expect China to quickly come into compliance with its WTO obligations,” said U.S. Trade Representative Robert Lighthizer.

“We know that America’s farmers and ranchers thrive in a market-oriented, rules-based global economy. That means all countries must play by the rules, which is why this finding is so important to U.S. agriculture,” said Agriculture Secretary Sonny Perdue.