Photo: Norm / Wikimedia Commons, Public domain
China is the biggest buyer of U.S. soybeans, and Iowa grows more than any state except Illinois. When the two countries fight over trade, Wright County farmers feel it.
In the 2018-19 trade war, Chinese purchases dropped sharply and soybean prices fell. The federal government sent about $23 billion in Market Facilitation Program payments to farmers over two years.
China has since built up purchases from Brazil, which now grows more soybeans than the U.S. That means less leverage for American growers.
Iowa farmers also sell soybeans for crush. New crush plants around the Midwest, built to supply renewable diesel makers, have given farmers a domestic market that doesn’t depend on Beijing.
Curt Hanneman writes for Clarion News Online.