It’s no secret that farmers are facing countless challenges. Multiple economic pressures have converged to create what many people are now calling a crisis in agriculture.
In the Season 3 premiere of the Ag Policy Podcast, Farm Progress Policy Editor Josh Baethge talks with American Soybean Association Economist Jacquie Holland about how the current ag economy has put many row crop farmers in dire straits.
“I had a colleague the other day make the comment that it’s everything, everywhere, all at once for soybean farmers right now,” Holland says. “I think that’s how everybody in the row crop community feels because there are so many factors that are at play here.”
Those factors include the fallout from tariffs on both the production and input sides. Geopolitical uncertainty has unexpectedly locked farmers out of key markets. Future growth in other markets remains uncertain at best. Regulatory changes driving higher costs and increased competition from South American markets are only adding to farmers' woes.
While American soybean farmers are in the midst of harvesting a bumper crop, China, which typically buys more than half of all U.S. soybean exports, has yet to place any orders this year. In the meantime, freight and transportation costs are bringing additional hurdles, with low water levels on the Mississippi River only making things worse.
While the outlook for next year remains clouded, there could be some good news down the road. The Trump administration says it is prioritizing new trade deals to reduce U.S. farmers’ dependence on China. This year, the U.S. has announced tentative trade agreements with multiple countries, including Japan and the U.K. According to Holland, those deals are great prospects for U.S. soy, but more work needs to be done.
“We need to also get sales on the books to those countries,” she says. “As the administration continues those talks, hopefully they can be more assertive with these countries in saying that there needs to be purchases made, not just a promise to make a purchase.”