SIOUX CITY, Iowa (KCAU) -- With harvest set to begin any day now, soybean farmers say they are worried about ongoing tariff disputes with China. A quick check of the numbers shows prices for the cover crop have dropped below the cost of production.
China has accounted for 60% of soybean exports in the U.S., but so far has yet to purchase any from farmers. This is due to ongoing trade disputes, and producers are worried China won't be buying anytime soon.
"I'm not optimistic that China is going to come back and buy in droves, which is what really what we need," said David Weaver, a central Iowa farmer.
In 2023 and 2024, nearly 25 million metric tons of soybeans were shipped to China from the U.S., according to the American Soybean Association.
"You know, China has been our best soybean customer for years, for decades. And when your best customer starts having doubts, then that isn't good for the farm economy," said Weaver.
"Some farmers were reporting that their local elevator was not even accepting soybeans. Because they had their markets have been so devastated that they said, 'you're going to have to keep your soybeans on the farm, but try to store them on the farm or somewhere else.' That hasn't happened in decades," said Aaron Lehman, the president of the Iowa Farmers Union.
While China is the largest buyer of U.S. soybeans, the second largest, the European Union, can only buy one-fifth of what China purchases.
"We do have some buyers that we're working with, but that the volume that they're purchasing is down. The volume compared to some of our largest folks who aren't buying any soybeans is very, very small, so we're going to continue to do our best to trade. But in this atmosphere, it's really hard," said Lehman.
"China is the big boy on the block as far as soybean exports for our country. And we need that," Weaver said.
As of September 10, in Northwest Iowa, the average price for a bushel of soybeans was $9.41, while back in July, the average price was $10.20. A difference of $0.79.
Farmers say these prices won't cover the cost of production.
"It means we're burning through our capital just to try to get the next crop in the ground. It means that you purchase less from your local communities, you put off machinery maintenance, machinery upgrades that are badly needed. And as a result, our machinery manufacturers here in Iowa are laying off employees. It's going to mean having hard conversations with the banker," said Lehman.
"It's going to mean having hard conversations with the person you rent the land from. It's going to be hard conversations with the purchase of seed and fertilizer. It's going to be tough," said Weaver.
According to the USDA Crop Report, 77% of soybean conditions in Iowa are rated good or excellent.