Latest news with #AmericanSoybeanAssociation
The Guardian
21-05-2025
- Business
- The Guardian
Farmers fear Trump trade winds could damage crops: ‘It's unnerving'
Planting season is well under way across the US. And while farmers welcome news that the US and Chinese officials agreed to temporarily reduce tariffs placed on exports, plenty of uncertainty remains. China is one of the top three importers of US food commodities, behind Canada and Mexico, and the escalating trade war between Washington and Beijing has worried farmers - particularly grain farmers, who lost money on last year's harvest as bumper crops weighed on prices. Even as farmers plant this year's corn and soya bean crops, agricultural economists estimate grain farmers could lose money again as total production costs remain above current prices, unless something changes. In a 90-day truce announced on 12 May, the US will cut the additional tariffs it placed on Chinese imports to 30%, down from 145%, while Chinese levies on US imports will drop to 10%. Over the next three months, the two countries will continue negotiations. Soya bean farmers have much to gain – or lose – in Chinese trade talks. Last year 54% of US soya bean exports went to China, according to the American Soybean Association. Soya beans were a casualty of Donald Trump's trade war with China during his first term in 2016. Between 2000 to 2016, the US's share of Chinese soya bean imports averaged around 40%, but by 2018 but it fell sharply as China turned to Brazil for its oilseed needs, said Lane Akre, economist at Farm Journal, a trade publication. Although the US and China eventually formalized trade for a few years, the US's market share of Chinese purchases never rebounded. Last year it was only 22%, Akre said. Caleb Ragland, the soya bean association's president and a soya bean producer in Kentucky, and Brian Duncan, president of Illinois Farm Bureau, who also runs a grain and livestock farm in north-west Illinois, both said they're happy to see a truce, but the 90-day pause is not a long-term solution. 'We understand the importance of fair trade, but we've historically supported a rules-based approach to trade. We're hopeful that the negotiations here can lead to a productive framework,' Duncan said. Duncan said the investments farmers make in their operations, such as machinery, land, livestock and crops, are costs that often are paid for over years, costs that can't be passed on. That makes trade uncertainty so difficult to manage. 'We're price takers, not price makers. So it's unnerving here, as we're planting this crop, wondering what demand is going to be, and realizing that during the last round of trade disputes with China, it pushed them further into the arms of Brazil,' he said. China is also an important export market for US pork, as 55% of pork offal products not readily consumed domestically, such as snouts and feet, go to China, in addition to muscle cuts, according to the National Pork Producers Council. Karl Setzer, partner with Consus Ag Consulting, a grain merchandising consultant, said farmer sentiment surveys, such as those taken monthly by Purdue University, show farmers are optimistic and think tariffs will be beneficial in the long run. He said some of that optimism may reflect the fact that farmers received subsidies from the Trump administration during the last trade war. Setzer wasn't sure the optimism on tariffs is warranted in the long run. Despite the China rows, both Setzer and Akre said the US has other export markets to sell its grain and oilseeds but inking a deal with China matters. What's potentially concerning is that the truce will end in 90 days, just before farmers begin the fall harvest. The truce comes at a lull in crop marketing, as much of last year's harvest has been sold, and farmers haven't forward-booked sales for the new crop that will be harvested in the fall. That makes it hard to tell the impact of the truce, said Setzer. 'We don't know what it means for new crop yet. Demand doesn't really start to increase until we get to June or July,' he said.
South China Morning Post
14-05-2025
- Business
- South China Morning Post
Lower tariffs remain too costly for soybeans and other US sectors, Congress hears
The costs of broad-based tariffs on Chinese imports remain too high even if the tariff reduction deal between Washington and Beijing lasts beyond 90 days, the head of a soybean industry group told US senators on Wednesday. After weekend talks in Switzerland, the two nations agreed to reduce tariffs temporarily until they reach a more substantive deal, with US tariffs on Chinese imports lowered to 30 per cent, from 145 per cent, and Chinese tariffs on US imports cut to 10 per cent, from 125 per cent. 'While this reduction is a step in the right direction, US soybeans are still facing a duty into our largest export market nearly equal to the height of the 2018 trade war,' Caleb Ragland, president of the American Soybean Association, told a hearing of the Senate Finance Committee. According to Ragland, US soybeans exported to China now face levies of 34 per cent, reflecting Beijing's retaliatory duties, the most favoured nation rate, and China's value added tax. While US soybean farmers have searched for years for alternatives to the Chinese market, Ragland said it could not be completely replaced given the 'sheer volume' of its demand. The US sells more soybeans to China, by value, than any other single product, even after President Donald Trump, then in his first term, launched his first trade war against the country in 2018, which drastically reduced US soybean exports.
Yahoo
13-05-2025
- Business
- Yahoo
US farmers say Brazil still has edge in China's soybean market despite trade truce
By Tom Polansek CHICAGO (Reuters) -A surprising tariff pause between Beijing and Washington will not help U.S. farmers gain soy sales in China without additional concessions, producers said, because top-supplier Brazil still has a competitive price advantage. Under the truce announced on Monday, the U.S. will cut extra tariffs it imposed on Chinese imports to 30% from 145% for the next three months, while Chinese duties on U.S. imports will fall to 10% from 125%. Soybean export premiums fell in Brazil on the de-escalation, reflecting expectations that China could buy more from the U.S. But American farmers said the tariff pause isn't enough. Brazil, the biggest soy supplier to China, has ample supplies from a record harvest and its farmers do not face the Chinese tariff that U.S. competitors do. China, the world's largest crop importer, already sources roughly 70% of its soybean imports from Brazil. "The tariff that remains in place for U.S. soy is far from inconsequential," said Caleb Ragland, a farmer in Magnolia, Kentucky, and president of the American Soybean Association. "Products purchased from our competitors in Brazil and Argentina are not burdened with this extra cost." While the U.S. in 2022/23 accounted for about 28% of China's soybean imports, it has been a critical market for U.S. farmers, representing more than half of U.S. soybean exports in the most recent marketing year. President Donald Trump's trade war created an opportunity for Brazil. The country aims to export even more agricultural goods to China, including sorghum, pork and chicken, and seize market share, said Luis Rua, who oversees foreign trade for Brazil's Ministry of Agriculture. "What they (China) will buy is what they barely need to get by," Dan Henebry, a corn and soy grower in Buffalo, Illinois, said. "If South America is short... they'll buy from us." Chinese buyers have also avoided U.S. wheat and bought 400,000 to 500,000 metric tons from Australia and Canada in recent weeks, traders said. U.S. farmers hope that China may buy American crops as part of trade negotiations with Washington. Some growers said they would make advance sales of their autumn corn and soy harvests if crop prices rise because of increased demand. The pause is set to expire just before U.S. farmers begin harvesting soybeans and corn, an important time for exports. They planted fewer soybeans this spring than last year because the crop looked less profitable than corn. The truce did little to address underlying issues that led to the dispute, including the U.S. trade deficit with China that has aggravated some farmers. Beijing did not fulfill commitments to buy more U.S. agricultural products under a trade deal it struck with Trump during his first term in 2020. "The situation was bad before we started and something needed to be done. The situation is still bad," said Ron Heck, a corn and soy farmer in Perry, Iowa. At the time, China had slashed purchases of U.S. crops, prompting Trump's administration to pay farmers billions of dollars in aid. "It doesn't appear that we solved anything after that turmoil," said Henebry. "We're right back at the baseball plate trying to see if we're going to hit a home run or strike out again."
Yahoo
13-05-2025
- Business
- Yahoo
US farmers say Brazil still has edge in China's soybean market despite trade truce
By Tom Polansek CHICAGO (Reuters) -A surprising tariff pause between Beijing and Washington will not help U.S. farmers gain soy sales in China without additional concessions, producers said, because top-supplier Brazil still has a competitive price advantage. Under the truce announced on Monday, the U.S. will cut extra tariffs it imposed on Chinese imports to 30% from 145% for the next three months, while Chinese duties on U.S. imports will fall to 10% from 125%. Soybean export premiums fell in Brazil on the de-escalation, reflecting expectations that China could buy more from the U.S. But American farmers said the tariff pause isn't enough. Brazil, the biggest soy supplier to China, has ample supplies from a record harvest and its farmers do not face the Chinese tariff that U.S. competitors do. China, the world's largest crop importer, already sources roughly 70% of its soybean imports from Brazil. "The tariff that remains in place for U.S. soy is far from inconsequential," said Caleb Ragland, a farmer in Magnolia, Kentucky, and president of the American Soybean Association. "Products purchased from our competitors in Brazil and Argentina are not burdened with this extra cost." While the U.S. in 2022/23 accounted for about 28% of China's soybean imports, it has been a critical market for U.S. farmers, representing more than half of U.S. soybean exports in the most recent marketing year. President Donald Trump's trade war created an opportunity for Brazil. The country aims to export even more agricultural goods to China, including sorghum, pork and chicken, and seize market share, said Luis Rua, who oversees foreign trade for Brazil's Ministry of Agriculture. "What they (China) will buy is what they barely need to get by," Dan Henebry, a corn and soy grower in Buffalo, Illinois, said. "If South America is short... they'll buy from us." Chinese buyers have also avoided U.S. wheat and bought 400,000 to 500,000 metric tons from Australia and Canada in recent weeks, traders said. U.S. farmers hope that China may buy American crops as part of trade negotiations with Washington. Some growers said they would make advance sales of their autumn corn and soy harvests if crop prices rise because of increased demand. The pause is set to expire just before U.S. farmers begin harvesting soybeans and corn, an important time for exports. They planted fewer soybeans this spring than last year because the crop looked less profitable than corn. The truce did little to address underlying issues that led to the dispute, including the U.S. trade deficit with China that has aggravated some farmers. Beijing did not fulfill commitments to buy more U.S. agricultural products under a trade deal it struck with Trump during his first term in 2020. "The situation was bad before we started and something needed to be done. The situation is still bad," said Ron Heck, a corn and soy farmer in Perry, Iowa. At the time, China had slashed purchases of U.S. crops, prompting Trump's administration to pay farmers billions of dollars in aid. "It doesn't appear that we solved anything after that turmoil," said Henebry. "We're right back at the baseball plate trying to see if we're going to hit a home run or strike out again."
Yahoo
13-05-2025
- Business
- Yahoo
US farmers say Brazil still has edge in China's soybean market despite trade truce
By Tom Polansek CHICAGO (Reuters) -A surprising tariff pause between Beijing and Washington will not help U.S. farmers gain soy sales in China without additional concessions, producers said, because top-supplier Brazil still has a competitive price advantage. Under the truce announced on Monday, the U.S. will cut extra tariffs it imposed on Chinese imports to 30% from 145% for the next three months, while Chinese duties on U.S. imports will fall to 10% from 125%. Soybean export premiums fell in Brazil on the de-escalation, reflecting expectations that China could buy more from the U.S. But American farmers said the tariff pause isn't enough. Brazil, the biggest soy supplier to China, has ample supplies from a record harvest and its farmers do not face the Chinese tariff that U.S. competitors do. China, the world's largest crop importer, already sources roughly 70% of its soybean imports from Brazil. "The tariff that remains in place for U.S. soy is far from inconsequential," said Caleb Ragland, a farmer in Magnolia, Kentucky, and president of the American Soybean Association. "Products purchased from our competitors in Brazil and Argentina are not burdened with this extra cost." While the U.S. in 2022/23 accounted for about 28% of China's soybean imports, it has been a critical market for U.S. farmers, representing more than half of U.S. soybean exports in the most recent marketing year. President Donald Trump's trade war created an opportunity for Brazil. The country aims to export even more agricultural goods to China, including sorghum, pork and chicken, and seize market share, said Luis Rua, who oversees foreign trade for Brazil's Ministry of Agriculture. "What they (China) will buy is what they barely need to get by," Dan Henebry, a corn and soy grower in Buffalo, Illinois, said. "If South America is short... they'll buy from us." Chinese buyers have also avoided U.S. wheat and bought 400,000 to 500,000 metric tons from Australia and Canada in recent weeks, traders said. U.S. farmers hope that China may buy American crops as part of trade negotiations with Washington. Some growers said they would make advance sales of their autumn corn and soy harvests if crop prices rise because of increased demand. The pause is set to expire just before U.S. farmers begin harvesting soybeans and corn, an important time for exports. They planted fewer soybeans this spring than last year because the crop looked less profitable than corn. The truce did little to address underlying issues that led to the dispute, including the U.S. trade deficit with China that has aggravated some farmers. Beijing did not fulfill commitments to buy more U.S. agricultural products under a trade deal it struck with Trump during his first term in 2020. "The situation was bad before we started and something needed to be done. The situation is still bad," said Ron Heck, a corn and soy farmer in Perry, Iowa. At the time, China had slashed purchases of U.S. crops, prompting Trump's administration to pay farmers billions of dollars in aid. "It doesn't appear that we solved anything after that turmoil," said Henebry. "We're right back at the baseball plate trying to see if we're going to hit a home run or strike out again." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
