Latest news with #cornbelt
The Guardian
2 days ago
- Business
- The Guardian
Farmers in US midwest squeezed by Trump tariffs and climate crisis
Seventh-generation farmer Brian Harbage grows corn, soybeans and grass, and runs a cattle operation across five counties in western Ohio. In the world of agriculture, his work makes up a large business. And still, the past two years have been immensely challenging amid the twin threats of the climate crisis and the Trump administration. Last year, regions of the eastern corn belt saw just 20% of crops harvested due to a drought that brought little precipitation between June and October. It was part of a climatic cycle that involved drought, heat and wildfires that cost crop producers $11bn nationally. 'Last year, we got a good crop started, and then it just quit raining. Our yields were definitely reduced by at least 25-30%,' says Harbage. This year, it's been almost the complete opposite. Excess rainfall has fueled severe disease and pest pressure on the several thousand acres of soybeans and corn he planted in the spring. 'There were three-day windows, it seemed like. It would just start to get dried out and it would rain,' he says. 'We finished up [planting] at the beginning of June. We like to be finished by 15 May. Anything that's planted later means that it was probably planted in marginal conditions since we were rushing to get it in, and secondly, it doesn't have near enough time to mature before harvest.' With the 2025 harvest of corn and soybeans approaching – America's biggest two crops and the linchpins of agriculture – crop growers are facing down the gauntlet. Climatic swings, rocketing operating costs and low international demand, caused, in large part, by government policy in the shape of tariffs, has created the perfect storm. 'Farming is not for the worrisome,' says Harbage. 'We always kid that we are crisis managers.' Suicide rates among farmers are 3.5 times the national level. In 2023-24, China bought 24.9m metric tons of soybeans worth $13.2bn, largely used to feed its 427-million-strong pig herd. At under 6m metric tons, US farmers' second biggest international soybean market, Mexico, lags far behind. Since 2017, when tariffs were first introduced by President Trump, crop farmers have been struggling with the decline of China as the leading market for soybeans and an important market for corn exports. Last month, reports emerged that exports of soybeans – America's largest grain export by value – had hit a 20-year low. 'Tariffs are probably something that will help in the long run, for the whole country; in the short run it's terrible for farmers,' says Harbage. 'We're really taking it on the chin now because if we can't export, our prices are low. And if we can't export and we have a terrible crop then it's a one-two punch. I see what the government wants to do, but it's hurting me in the near term.' Farmers and rural Americans are keen to highlight that their political and voting preferences are rarely fueled by a single issue or event such as tariffs. Many continue to back Trump, despite the obvious financial challenges the president's policies are fomenting. Trump has been largely silent on addressing the pain his tariffs have caused farmers and ranchers, despite rural voters being a cornerstone of his political base. On 10 August, he posted to Truth Social a demand that China quadruple its purchases of American soybeans. The president claimed that China was 'worried' about having a soybean shortage, although China has vowed to increase its domestic soybean production yield by 38% by 2034. What's more, some market analysts say that Trump's post didn't make the rounds on Chinese social media, suggesting his demand may not have been heard by the country's political leaders. With the soybean harvest in the midwest set to start about a month from now, and corn following weeks later, the fear that China may not buy a single shipload of grain this season is growing for many. 'With [tariffs] in place, we are not competitive with soybeans from Brazil. Our marketing year starts 1 October and usually by now we'd see China making commitments to pre-purchases for soybeans. China has not made a single purchase for US soybeans,' says Virginia Houston, director of government affairs at the American Soybean Association, a lobbying organization. 'No market can match China's demand for soybeans. Right now, there is a 20% retaliatory duty from China.' To appease his farming base, the Trump administration announced $60bn in subsidies for farmers over the next decade in the recent tax bill, but that has drawn criticism from those who say that farmers shouldn't be subsidized on taxpayers' dime. Others have reported that funding is going to select producers in specific regions of the US, benefiting bigger producers rather than family farms. Adding to the export challenges, the price of commodity crops in the US has been in steady decline for the past three years due to a smaller cattle herd and falling ethanol production. Houston says that when she speaks with the White House and Congress to share the struggles farmers are facing due to tariffs, the response is that 'they support farmers [but] we are one cog in the wheel of this complex relationship. 'The farm economy is in a much tougher place than where we were in 2018 [during Trump's previous China trade war]. Prices have gone down while inputs – seed, fertilizer, chemicals, land and equipment – continue to go up.' All the while, unpredictable weather conditions continue to make planning more difficult. For much of this summer, afternoon storms had been a near-daily occurrence in Indiana, Ohio and elsewhere in the eastern corn belt, causing ponding that kills early plant growth. Diseases such as northern corn leaf blight, gray leaf spot and tar spot soon followed. 'When it's being attacked by disease, it's not growing to its full potential because it's trying to fight off the disease,' says Harbage. Although he treated his crops for disease, the heat and humidity that have been an uncommon feature of life this summer can overcome the effects of fungicides. On top of that, Harbage says he'll have to spend additional money on propane to dry his corn before sending it to consumers, again due to the high moisture content. If Trump walked into his farm today, Harbage says he'd have one message. 'The exports is number one. That's the number one fix. We have to get rid of what we're growing, or we have to be able to use it,' he says. 'China, Mexico and Canada – we export $83bn worth of commodities to them a year. So if they're not buying, we're stuck with our crop.' In the US, you can call or text the National Suicide Prevention Lifeline at 988, chat on or text HOME to 741741 to connect with a crisis counselor. In the UK and Ireland, Samaritans can be contacted on freephone 116 123, or email jo@ or jo@ In Australia, the crisis support service Lifeline is 13 11 14. Other international helplines can be found at
The Guardian
3 days ago
- Business
- The Guardian
Farmers in US midwest squeezed by Trump tariffs and climate crisis
Seventh-generation farmer Brian Harbage grows corn, soybeans and grass, and runs a cattle operation across five counties in western Ohio. In the world of agriculture, his work makes up a large business. And still, the past two years have been immensely challenging amid the twin threats of the climate crisis and the Trump administration. Last year, regions of the eastern corn belt saw just 20% of crops harvested due to a drought that brought little precipitation between June and October. It was part of a climatic cycle that involved drought, heat and wildfires that cost crop producers $11bn nationally. 'Last year, we got a good crop started, and then it just quit raining. Our yields were definitely reduced by at least 25-30%,' says Harbage. This year, it's been almost the complete opposite. Excess rainfall has fueled severe disease and pest pressure on the several thousand acres of soybeans and corn he planted in the spring. 'There were three-day windows, it seemed like. It would just start to get dried out and it would rain,' he says. 'We finished up [planting] at the beginning of June. We like to be finished by 15 May. Anything that's planted later means that it was probably planted in marginal conditions since we were rushing to get it in, and secondly, it doesn't have near enough time to mature before harvest.' With the 2025 harvest of corn and soybeans approaching – America's biggest two crops and the linchpins of agriculture – crop growers are facing down the gauntlet. Climatic swings, rocketing operating costs and low international demand, caused, in large part, by government policy in the shape of tariffs, has created the perfect storm. 'Farming is not for the worrisome,' says Harbage. 'We always kid that we are crisis managers.' Suicide rates among farmers are 3.5 times the national level. In 2023-24, China bought 24.9m metric tons of soybeans worth $13.2bn, largely used to feed its 427-million-strong pig herd. At under 6m metric tons, US farmers' second biggest international soybean market, Mexico, lags far behind. Since 2017, when tariffs were first introduced by President Trump, crop farmers have been struggling with the decline of China as the leading market for soybeans and an important market for corn exports. Last month, reports emerged that exports of soybeans – America's largest grain export by value – had hit a 20-year low. 'Tariffs are probably something that will help in the long run, for the whole country; in the short run it's terrible for farmers,' says Harbage. 'We're really taking it on the chin now because if we can't export, our prices are low. And if we can't export and we have a terrible crop then it's a one-two punch. I see what the government wants to do, but it's hurting me in the near term.' Farmers and rural Americans are keen to highlight that their political and voting preferences are rarely fueled by a single issue or event such as tariffs. Many continue to back Trump, despite the obvious financial challenges the president's policies are fomenting. Trump has been largely silent on addressing the pain his tariffs have caused farmers and ranchers, despite rural voters being a cornerstone of his political base. On 10 August, he posted to Truth Social a demand that China quadruple its purchases of American soybeans. The president claimed that China was 'worried' about having a soybean shortage, although China has vowed to increase its domestic soybean production yield by 38% by 2034. What's more, some market analysts say that Trump's post didn't make the rounds on Chinese social media, suggesting his demand may not have been heard by the country's political leaders. With the soybean harvest in the midwest set to start about a month from now, and corn following weeks later, the fear that China may not buy a single shipload of grain this season is growing for many. 'With [tariffs] in place, we are not competitive with soybeans from Brazil. Our marketing year starts 1 October and usually by now we'd see China making commitments to pre-purchases for soybeans. China has not made a single purchase for US soybeans,' says Virginia Houston, director of government affairs at the American Soybean Association, a lobbying organization. 'No market can match China's demand for soybeans. Right now, there is a 20% retaliatory duty from China.' To appease his farming base, the Trump administration announced $60bn in subsidies for farmers over the next decade in the recent tax bill, but that has drawn criticism from those who say that farmers shouldn't be subsidized on taxpayers' dime. Others have reported that funding is going to select producers in specific regions of the US, benefiting bigger producers rather than family farms. Adding to the export challenges, the price of commodity crops in the US has been in steady decline for the past three years due to a smaller cattle herd and falling ethanol production. Houston says that when she speaks with the White House and Congress to share the struggles farmers are facing due to tariffs, the response is that 'they support farmers [but] we are one cog in the wheel of this complex relationship. 'The farm economy is in a much tougher place than where we were in 2018 [during Trump's previous China trade war]. Prices have gone down while inputs – seed, fertilizer, chemicals, land and equipment – continue to go up.' All the while, unpredictable weather conditions continue to make planning more difficult. For much of this summer, afternoon storms had been a near-daily occurrence in Indiana, Ohio and elsewhere in the eastern corn belt, causing ponding that kills early plant growth. Diseases such as northern corn leaf blight, gray leaf spot and tar spot soon followed. 'When it's being attacked by disease, it's not growing to its full potential because it's trying to fight off the disease,' says Harbage. Although he treated his crops for disease, the heat and humidity that have been an uncommon feature of life this summer can overcome the effects of fungicides. On top of that, Harbage says he'll have to spend additional money on propane to dry his corn before sending it to consumers, again due to the high moisture content. If Trump walked into his farm today, Harbage says he'd have one message. 'The exports is number one. That's the number one fix. We have to get rid of what we're growing, or we have to be able to use it,' he says. 'China, Mexico and Canada – we export $83bn worth of commodities to them a year. So if they're not buying, we're stuck with our crop.' In the US, you can call or text the National Suicide Prevention Lifeline at 988, chat on or text HOME to 741741 to connect with a crisis counselor. In the UK and Ireland, Samaritans can be contacted on freephone 116 123, or email jo@ or jo@ In Australia, the crisis support service Lifeline is 13 11 14. Other international helplines can be found at
Zawya
16-06-2025
- Business
- Zawya
Soyoil around 18-month highs, grains fall on good crop weather
HAMBURG - Chicago soyoil hit its highest in around 18 months on Monday, supported by U.S. biofuel blending proposals that are likely to increase demand, while favourable U.S. weather conditions drove wheat and corn lower. Crude oil fell after renewed military strikes by Israel and Iran over the weekend left oil production and export facilities unaffected, easing concern about disruption of crude supplies. That removed some of the support for soybean prices, which tend to move in tandem with oil, that was seen on Friday. The larger-than-expected biofuel blend proposals, however, still supported the soy complex. The Chicago Board of Trade's most-active soyoil rose 5.7% to 53.50 cents per pound at 1131 GMT, around its highest since December 2023. Soyoil gains also pulled soybeans up 0.1% at $10.71-3/4 per bushel. Wheat fell 1.2% to $5.37-1/4 a bushel as the U.S. winter wheat harvest accelerates. Corn fell 1.1% to $4.39-1/2 a bushel, weakened by favourable weather forecasts for crop development in the U.S. corn belt. 'Soybeans and soyoil are being underpinned by the Trump administration's larger-than-expected biofuel blending proposals which would generate more demand for soyoil and so soybeans," said Matt Ammermann, StoneX commodity risk manager. "The Trump Administration is not known to be renewable energy-friendly, but the substantial increase could be intended to reduce the sting of the trade war with China, which has hugely damaged U.S. soy exports to China.' Traders await weekly crop ratings on Monday from the U.S. Department of Agriculture, with U.S. winter wheat harvesting accelerating, corn and soybean planting is finishing. 'Wheat and corn are weaker today as crop weather in the U.S. is looking very positive this week, with just the right mix of sunshine needed for the winter wheat harvest with a little rain needed for corn development,' said Ammermann. 'Other north hemisphere wheat crops are also looking good, especially in the Black Sea. This raises the prospects of extra competition from the Black Sea to exporters in the U.S. and other regions.'
Zawya
09-06-2025
- Business
- Zawya
Funds' bearish sentiment on US grains and oilseeds hits nine-month high: Braun
(The opinions expressed here are those of the author, a market analyst for Reuters.) NAPERVILLE, Illinois - Speculators dug deeper into bear territory last week across U.S. grain and oilseed futures, and with this time of year known to feature plenty of uncertainties, investors must keep their eyes glued on upcoming weather forecasts for the U.S. Corn Belt. In the week ended June 3, money managers' combined net short position across U.S. grain and oilseed futures and options surpassed 400,000 contracts, up more than 90,000 on the week. That marks their most bearish collective position since early September and their most bearish open to June in eight years. Just four months ago, the combined net long topped out at 300,000 contracts. Last week's move was driven by heavier selling in corn, soybeans and soybean oil. Money managers maintained bullish CBOT soybean oil bets through the week ended June 3, but they slashed their net long futures and options contracts by 22,000 to 31,990 contracts due to negative sentiment on the U.S. biofuels front. Money managers nearly erased bullish bets in CBOT soybean futures and options, reducing their net long to 8,601 contracts from 36,697 a week earlier. Funds' bearish soymeal position remained near-record large as prices have traded sideways over the last several weeks, and they also maintained sizable net shorts across the wheat flavors. CORN FOCUS Last week's net selling in corn was primarily driven by a large wave of new gross short positions, a trend that has been present in six of the last seven weeks. As of June 3, money managers' net short in CBOT corn futures and options hit a nine-month high of 154,043 contracts, up from 100,760 a week earlier. Recent heavy speculative selling in corn comes against the backdrop of a wildly strong U.S. export program and similarly robust U.S. ethanol grind. These factors have pared 2024-25 U.S. corn ending stock predictions significantly over the last year. However, the futures market does not seem to be reflecting a terribly tight situation. Late last week, CBOT July corn opened up a discount to December corn, not suggestive of imminent concern over supplies. Funds' building bearishness in corn as well as the newly established market carry could be hinting at the expectation that last year's U.S. corn crop was larger than the U.S. Department of Agriculture stated. The agency's June 30 stocks report could potentially validate this notion. But in the meantime, traders will need to be watching the U.S. weather forecasts, which as of Friday suggested a potential dry spell for the western Corn Belt over the next two weeks. Heat risks were relatively low, though corn and soybean crop conditions are sitting at just average levels. In the week ahead, the market will be anticipating USDA's monthly supply and demand report on Thursday, and traders expect a further contraction in old-crop U.S. corn supply. All eyes will turn toward London on Monday, where top U.S. and Chinese officials will hold talks aimed at resolving trade disputes. Pending the outcome, this could have markets starting off the week with a bang. But whether that trajectory is higher or lower is anyone's guess. Karen Braun is a market analyst for Reuters. Views expressed above are her own. (Writing by Karen Braun; Editing by Edwina Gibbs)
Reuters
08-06-2025
- Business
- Reuters
Funds' bearish sentiment on US grains and oilseeds hits nine-month high
NAPERVILLE, Illinois, June 8 (Reuters) - Speculators dug deeper into bear territory last week across U.S. grain and oilseed futures, and with this time of year known to feature plenty of uncertainties, investors must keep their eyes glued on upcoming weather forecasts for the U.S. Corn Belt. In the week ended June 3, money managers' combined net short position across U.S. grain and oilseed futures and options surpassed 400,000 contracts, up more than 90,000 on the week. That marks their most bearish collective position since early September and their most bearish open to June in eight years. Just four months ago, the combined net long topped out at 300,000 contracts. Last week's move was driven by heavier selling in corn, soybeans and soybean oil. Money managers maintained bullish CBOT soybean oil bets through the week ended June 3, but they slashed their net long futures and options contracts by 22,000 to 31,990 contracts due to negative sentiment on the U.S. biofuels front. Money managers nearly erased bullish bets in CBOT soybean futures and options, reducing their net long to 8,601 contracts from 36,697 a week earlier. Funds' bearish soymeal position remained near-record large as prices have traded sideways over the last several weeks, and they also maintained sizable net shorts across the wheat flavors. Last week's net selling in corn was primarily driven by a large wave of new gross short positions, a trend that has been present in six of the last seven weeks. As of June 3, money managers' net short in CBOT corn futures and options hit a nine-month high of 154,043 contracts, up from 100,760 a week earlier. Recent heavy speculative selling in corn comes against the backdrop of a wildly strong U.S. export program and similarly robust U.S. ethanol grind. These factors have pared 2024-25 U.S. corn ending stock predictions significantly over the last year. However, the futures market does not seem to be reflecting a terribly tight situation. Late last week, CBOT July corn opened up a discount to December corn , not suggestive of imminent concern over supplies. Funds' building bearishness in corn as well as the newly established market carry could be hinting at the expectation that last year's U.S. corn crop was larger than the U.S. Department of Agriculture stated. The agency's June 30 stocks report could potentially validate this notion. But in the meantime, traders will need to be watching the U.S. weather forecasts, which as of Friday suggested a potential dry spell for the western Corn Belt over the next two weeks. Heat risks were relatively low, though corn and soybean crop conditions are sitting at just average levels. In the week ahead, the market will be anticipating USDA's monthly supply and demand report on Thursday, and traders expect a further contraction in old-crop U.S. corn supply. All eyes will turn toward London on Monday, where top U.S. and Chinese officials will hold talks aimed at resolving trade disputes. Pending the outcome, this could have markets starting off the week with a bang. But whether that trajectory is higher or lower is anyone's guess. Karen Braun is a market analyst for Reuters. Views expressed above are her own.
