You may not be seeing as many headlines about the trade war, but unfortunately the impacts are multiplying.
And US farms are taking it on the chin.
Soybeans are a big US business – they’re our single largest agricultural export, valued at $28 billion. Almost half of that volume has historically come from China, which helps farms throughout the Midwest, especially in Illinois, Iowa, Minnesota, and Indiana.
But so far this year, China has bought zero soybeans.
Zilch. Zip. Nada.
That’s a big problem – so big that the USDA is expected to start trimming how much the US will export in the year ahead. While no one has announced an officially boycott, and there’s still time for Chinese buyers to step into the market, thus far they’ve been focusing on South American soybeans.
South American soybeans are 80-90 cents more expensive per bushel than US soybeans…
Until you add in tariffs, which add $2 per bushel to the US price.
Unfortunately, farmers across the Midwest are starting to feeling the pinch.
Does this trade war feel like it’s getting us anything? Leave a comment and join the discussion!
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