US soybean farmers seek relief as Chinese orders wither
Tariff impacts force growers to stockpile crops, wait for government aid
Unresolved trade negotiations and the United States' tariffs are having a devastating effect on US soybean farmers due to the absence of orders from China, the world's largest soybean importer, according to agricultural groups and experts.
"It's extremely unfortunate that soybeans are targeted as something to use as a pressure point in these high-level negotiations between China and the United States," said Jim Sutter, CEO of the US Soybean Export Council, who recently went on a trip to Asia, including China.
"This long relationship between Chinese importers and US exporters and farmers … we'd like to see that getting back to normal," he told China Daily.
Lia Nogueira, an associate professor in the Department of Agricultural Economics at the University of Nebraska-Lincoln, said China's role as a buyer of US soybeans before the trade disruptions was "very, very important".
"US farmers are definitely feeling the effects of not having China as a market anymore," she said. China's shift to Brazil and Argentina has not only cut US farmers off from their largest market, but also pushed global soybean prices downward, creating a "double effect" of lost markets and lower prices for US producers, she added.
"Brazil and Argentina have been filling that gap at cheaper prices," Nogueira said.
Before Donald Trump launched his trade war against China in 2018 during his first term as US president, China purchased between one quarter and a third of all US soybean production. Since then, China has been trying to develop alternative sources.
In recent years, Brazil has significantly increased its exports to the Chinese market. Last year, 71 percent of China's soybean imports came from Brazil.
Argentina's recent policy changes have intensified competition. On Sept 22, Argentina announced the temporary elimination of export taxes on soybeans, once as high as 26 percent, and on soy oil and soy meal (24.5 percent) — stimulating $7 billion in sales within two days. These changes have further pressured US farmers.
