American soybean farmers are realizing industry-wide losses, as crop prices fall and farm expenses soar.
China is the number one export destination for US soybeans. But China recently slapped 10% tariffs of US soybean imports in retaliation for President Trump’s tariffs on Chinese goods.
Farmers are urging Trump to reverse course and make a trade deal with China, and thereby restore their markets. But Chinese soybean buyers were already moving away from US sources, and replacing US beans with Brazil’s.
Across all the major crops, BRICS countries are both supplying and consuming half the world’s grains, and doing so outside our commodities exchanges, and at lower prices. Even were the tariffs to go away, the BRICS grain exchanges and China’s own self-sufficiency drives will permanently eliminate most of the G7’s export markets.
Closing scene, Sichuan Highway
Resources and links:
Analyzing Farm Inputs: The Cost to Farm Keeps Rising
The United States, Brazil, and China Soybean Triangle: A 20-Year Analysis
I’m a Soybean Farmer Who Voted for Trump. I’m Begging the President to End the Trade War.
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Wheat Market Outlook and Prices
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Will the BRICS Grain Exchange Mean Deeper Integration?
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