US soybean farmers are closely monitoring the developments surrounding a potential trade agreement with China, which could significantly impact their livelihoods. As negotiations continue, these farmers remain optimistic that a solution to trade tensions will result in rising exports and much-needed economic relief.
Underway now are hotly contentious talks over the central tenets of trade, such as tariffs, market access, and agricultural subsidies. On the immediate horizon in recent years soybean production in the United States has exploded. Today, American farmers are looking to the increasingly profitable Chinese market. China is the second largest soy importer after the EU. Moving the negotiations in the right direction will mean big bucks for both sides.
At a recent big ag-industry conference deep in Trump country, soybean farmers were waxing euphoric about the expected great terms of the still-to-be-negotiated deal. All have suffered from the economic devastation of past trade fights that led to high tariffs and an unpredictable exporting landscape. Farmers have widely shared their experiences with the lack of export opportunities, losing volume and price. They directly link this decline to the current unrest.
Beyond the economic impacts, the farmers described the emotional impact of such uncertainty on their communities. Our agricultural sector is a leading advocate for free trade, as they depend on healthy international markets. Yet any shift in our trade relations can have ripple effects throughout the local economy—from impacts on employment to rising consumer costs.
A few family farmers told deeply personal stories that demonstrated the real-life consequences of the ill-advised trade war. One farmer found he had overplanted as demand disappeared. This decision took a major toll on his income and greatly restricted his capacity to invest in long-term improvements for his farm. One other farmer said that the price spikes and drops have created an environment where he can’t plan for the years to come.
Leading agricultural economists recently lent their expertise to the debate. They argue that reaching a deal would restore exporters’ fizz. They contend that U.S. soybeans are well-priced and have the highest standards of quality. This puts them in a highly attractive position to Chinese buyers the moment tariffs get lifted.
Numerous farmers are already leading the way in making preparations should the trade landscape change dramatically. Farmers are finding new markets and growing a wider variety of crops. At the same time, some are betting on tech to drive greater productivity and sustainability.
Industry groups have been clamoring for a swift compromise as talks continue. Their motivation is to see soybean farmers get back on their feet. They support efforts for cultivating proactive and stable trade relations with China to provide a foundation for long-term growth and profitability in America’s agricultural sector.