Soybean farmers face financial pressure as China halts US purchases

The current one Trade dispute with China It has created serious headwinds for American farmers, as soybean producers have lost access to the world’s largest market for the commodity.

China stopped its purchases American soybeans This spring in response to tariffs imposed by the Trump administration, as a way to gain leverage in trade talks by shifting its purchases away from American producers to countries like Brazil and Argentina. China is the world’s largest importer of soybeans, bringing in 61% of the world’s traded soybean supply over the past five marketing years, according to data from the American Soybean Association (ASA).

The group said the United States has historically served as China’s main supplier, with American soybean farmers exporting an average of 28% of their crops to China before the 2018 trade war. That number fell to a low of 11% in the 2018-2019 agricultural year, but recovered during the pandemic, reaching 31% in 2020-2021 before falling to 22% in 2023-2024.

“We rely on trade with other countries, specifically China, to buy our soybeans,” Brad Arnold, a multi-generational soybean farmer in southwest Missouri, told FOX Business in an interview. He said China’s halting of soybean purchases from the United States “has huge impacts on our business and revenues.”

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“There are domestic uses for soybeans, such as renewable diesel and biodiesel produced specifically from soybeans,” Arnold said. “In the grand scheme of things, that’s such a small percentage right now, you know it would take a customer like China to buy the pills to make a noticeable impact. You can’t take our first customer and shut it down and look for a replacement overnight.”

Farmers would rather be able to sell their crops at market, rather than receive potential relief from the government, Arnold said, explaining that they have “long-term investments and commitments in terms of land and equipment.” “It’s not like you can stop farming one day and then suddenly do something else. There’s a huge financial commitment associated not only with the annual effort, but with the land as well.”

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Arnold added that farmers need a solution to the ongoing trade dispute to help them compete on an equal footing.

He explained: “I feel like this is a man-made or political situation we’re in now. President Trump is trying to do right by China and hold it accountable, and I think that’s a good thing.” “But we can’t lose sight of the fact that, you know, we’re hurting people and we’re hurting farmers when we play hardball.”

Soybean farmers will need to… Trade aid Soon due to harvest timing. While older farmers who may own their land or equipment outright may not be in great need, younger farmers who have to rent the land they farm and have operating notes face much greater risk, he said.

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“Having reliable trade partners is better in the long run,” he said. “Trade aid can help farmers survive in the short term, and help them stay in business and move forward into next year.” “But the problem is that if we’re not in the markets now, it’s just another signal for South America to keep expanding.”

South American soybean producers have entered, Gerlet said Argentina and Brazil They are likely to benefit from China’s demand for soybeans amid the country’s trade dispute with the United States, which could have long-term impacts on American farmers.

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“Brazil is expanding almost every year and has the potential to continue expanding,” Geralt said, noting that it poses a long-term threat to oil market share. American farmers If American soybeans do not compete in the global market. “Not reaching a trade agreement and exiting the market has very long-term implications.”