KDSN RADIO News
Iowa soybean farmers pinched by prices, trade woes
The USDA is predicting this year’s soybean harvest in Iowa will be the third-largest on record, but the country that at one time bought about 60% of all U.S. soybean exports isn’t buying at all. China has booked purchases from South America instead.
“It’s really death by a thousand cuts for our farmers right now which is they’re spending more for their inputs — for land, for equipment, for seed…for labor, for fuel — and they’re not getting the prices that they need,” Iowa Secretary of Agriculture Mike Naig said yesterday in Des Moines, “and we’re coming into what by all expectations will be a sizable, if not historic size of a crop.”
Naig told reporters recent U.S. negotiations with China about TikTok’s future might lead to a breakthrough on soybean exports.”And frankly, they need the U.S. as a supplier. They can’t entirely rely on South America, so we need to get to reality here,” Naig said. “I am hopeful that we will in fact see some movement in that regard.”
China purchased about 45% of U.S. soybean exports last year. U.S. soybeans are normally shipped to China from September through January, but experts who track sales say Chinese buyers haven’t booked any sales this fall. U.S. soybeans are now far cheaper than Brazilian soybeans, but any Chinese buyer would have to pay a 23% tariff on U.S. soybeans.
Naig said increasing domestic use of soybeans for biofuels is part of the answer, “but also let’s go play offense on trade.
“Governor Reynolds and I just got back from India — huge market potential. Obviously, some friction between the U.S. and India right now, although even as we were there, it softened, the president and Prime Minister exchanged messages, and so we know that negotiations are ongoing.”
Naig and Governor Kim Reynolds and 18 other Iowans returned Sunday after spending a week in India on a trade mission. The group met with leaders in India’s government as well as its manufacturing and agricultural sectors. There were stops in India’s capital of New Delhi and in Mumbai, India’s largest city and its financial center. The group’s other stop was in Pune, one of the most industrialized areas of India. Reynolds signed a partnership agreement with the region’s chief minister to expand trade ties between the two states and foster cooperation in advanced manufacturing, biotechnology and renewable energy.
