U.S. soybean farmers panic over lack of sales to China - Entrepreneur Generations

Some U.S. soybean farmers will store, instead of sell,
this year's crop. (Photo by Mark Serafino, Unsplash)

U.S. farmers haven’t sold beans to China, and soybean growers are sounding the alarm. "American soybean farmers are in panic mode as they harvest what is expected to be a bumper crop," reports Patrick Thomas of The Wall Street Journal. "China accounted for more than half of the $24.5 billion of American soybean exports last year."

By snubbing American soybeans and purchasing South American-grown beans instead, China is once again using U.S. farmer strife as a way to punish the Trump administration's trade wars. Thomas adds, "From January through August of this year, Chinese buyers purchased just over 200 million bushels of U.S. soybeans, compared with almost 1 billion bushels over the same period last year."

Even before China opted not to purchase U.S. soybeans, American farmers were already struggling with high costs for equipment, labor and fertilizer. "Congress in December passed a $10 billion bailout for farmers," Thomas wrote. "President Trump said on Monday that he was 'going to do some farm stuff this week' to help growers cope with the loss of exports to China."

Meanwhile, some soybean growers are choosing to store their harvested crops for now. Iowa soybean grower Morey Hill told Thomas, “There’s no incentive to sell right now." Hill predicted that without sales to China, the soybean market could likely turn into a "blood bath."

Instead of waiting on China, Hill has been traveling to countries such as Cambodia and Morocco, working to educate farmers on the benefits of using U.S. soybeans in their fish and animal feed, which is what China does with the majority of its soybeans.

The European Union, Mexico, Vietnam, Egypt and Bangladesh also purchase U.S. soybeans, but those sales, even when combined, aren't enough.

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