Trade War impacts Soybean Farmers
South Central, KY.- Soybeans, the largest U.S. agricultural export, are in high demand globally — but American farmers are seeing none of the benefit amid an ongoing trade war with China.
China, once the top buyer of U.S. soybeans, has purchased none of this year’s crop, putting immense pressure on growers across the country. “Everything is costing more to produce than it’s bringing in the market,” said Caleb Ragland, president of the Soybean Association. “Inflation has really devastated our industry.”
With farming planned months or years in advance, growers can’t quickly shift crops in response to global market changes.
“Growing a crop is a year-long process,” Ragland said. “It’s not the snap of a finger to make a change.” This year marks the first time in Ragland’s 21-year farming career that he’s harvested a crop with no chance of turning a profit. “We’re just trying to reduce how much we’re going to lose,” he said.
Ragland called the crisis “policy-driven,” citing inflation and trade tensions as a dangerous combination for American agriculture. Brazil has now overtaken the U.S. as the world’s leading soybean producer, further challenging the American market. “We don’t want handouts,” Ragland said. “We just need policy decisions that don’t build walls around our livelihood.”
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