Producers explore storage processing and crop shifts amid uncertainty
American soybean farmers are heading into harvest with an unusual problem. China, the largest buyer of U.S. soybeans, has not placed a single order for the upcoming market year. This absence has created major uncertainty for producers already struggling with high costs and low prices.
Agriculture economist Chad Hart from Iowa State University explained that China’s absence is significant since it purchases more than half of exported American soybeans. No other country can fill that gap. With profit margins already under pressure, the loss has added to financial strain for farmers.
Producers are weighing their options. Some consider storing soybeans until prices improve, but space is limited. With corn harvest following, storage bins may not be enough for both crops. Additionally, holding beans into spring risks competition with fresh Brazilian soybeans.
As an alternative, many are turning to domestic soybean processors. Crushing plants, which convert soybeans into oil and meal, have grown by 14% since 2023. North Dakota alone opened two facilities last year, offering better local prices. Yet farmers note that these plants also need export outlets for processed products, meaning the long-term challenge remains.
Others, like North Dakota farmer Mike Langseth, have shifted into the seed market, securing premium contracts that guarantee buyers and offer more stability. While this approach helped him weather China’s retreat, he cautions it is not an option for all.
Farmers agree that added storage and crush capacity are helpful, but they are only temporary fixes. Without strong export markets, particularly China, U.S. soybean producers will continue to face uncertain times.
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