Demand for Soybean Drives Iowa Exports to China

Mar 06, 2018

By Wendong Zhang

China Ag Center provides research, information on agricultural trade between U.S. and China.

The ties between Iowa farmers and China continue to grow. Currently, one in every four rows of soybean grown in the United States is exported to China while Iowa’s former governor, Terry Branstad, is now the U.S. ambassador to the country.

This growing partnership is the focus of ““Navigating the Chinese agricultural economy through the lens of Iowa”” by Wendong Zhang, assistant professor and extension economist with Iowa State University, and Minghao Li, postdoctoral researcher in Iowa State’s Center for Agricultural and Rural Development. The article appears in the February issue of Ag Decision Maker.

“The significance of China for the U.S.’s overall agricultural trade cannot be overestimated,” Zhang said. “The Chinese demand for U.S. agricultural products is even more significant for Iowa as the two imports they need the most – soybean and pork – are areas we excel in.”

Twenty percent of China’s population of 1.39 billion is engaged in agriculture compared with just 2 percent of the U.S. population. Despite this disparity in agricultural employees, Chinese farmers only operate on 1.4 acres of cropland per farmer, compared to an average of 200 acres per farmer in Iowa.

China is the second-largest agricultural trading partner with the U.S., with trade valued at $21.4 billion in 2016. This has created a $17.1 billion trade surplus in the agricultural sector. Its demand for U.S. agricultural products has increased five-fold since joining the World Trade Organization in 2001. Of the agricultural trade between the two countries, $14 billion is found in one product – soybeans.

“China can only produce 10 percent of their annual soybean consumption, the rest of what they need comes from the U.S. and Brazil,” Zhang said. “China is increasingly entering the market not as a poor, developing country but as a significant player who needs these products to meet their needs. As China grows richer and creates more demand, we want to insure we are their leading supplier of agricultural products as opposed to our competitors.”

No country imports more soybeans than China, receiving 87 percent of its consumption totals from markets like the U.S. and Brazil. Only four Chinese provinces plant more than 10 percent of the of the area planted for soybeans in Iowa. Yields are also smaller, with only 46 percent of Iowa’s average yield achieved.

The small number of acres of soybean grown is due to China’s decision to be self-sufficient in corn production, raising the number of acres of corn grown to roughly U.S. levels.

Source: iastate.edu

Video: The FCDC and AgSmart Bring Plant Breeding to a Wider Audience

In the vast prairies of Alberta, Olds College’s Field Crop Development Centre (FCDC) stands as a beacon of innovation and research in the agricultural world. The institution has become a key player in advancing agricultural technologies and practices. The FCDC’s commitment to applied research has driven them to seek effective means of disseminating their findings and creating a positive impact on the farming community.

One such avenue that aligns with their mission is AgSmart, an event dedicated to showcasing cutting-edge agricultural technologies. The coming together of the FCDC’s annual Field Day and Ag Smart has proved to be a natural fit, fostering a synergy that benefits both parties and propels the agriculture industry forward. The FCDC Field Day took part in conjunction with AgSmart for the first time this week on Aug. 1-2 in Olds, Alta. FCDC Program Director Kofi Agblor and Olds College VP of Development Todd Ormann sat down for an interview with Marc Zienkiewicz to discuss the significance of the two events taking part together and what the future holds.

The Intersection of Research and Technology The essence of the FCDC lies in its dedication to plant breeding and new seed varieties, particularly barley and triticale. While conducting research is essential, it becomes meaningful when its benefits are shared with the wider community. This is where AgSmart steps in, providing a key venue for the FCDC to showcase their research. This union between research and technology creates a holistic and enriching experience for farmers, ranchers, and industry professionals, the pair said.

Seeds as Technology For the FCDC, the partnership with AgSmart goes beyond mere event collaboration. It is about creating an environment that bridges the gap between seeds and smart technology, Ormann said. The college believes that for technology to truly revolutionize agriculture, it must begin with a strong foundation — high-quality seeds. As the saying goes, “it all starts with a seed.” To demonstrate this critical aspect, the collaboration aims to showcase the seed value chain as an integral part of the smartphone.

The Birth of a Powerful Alliance The idea of joining forces emerged when staff realized the potential synergy between AgSmart and the FCDC Field Day. With just a few days separating the two events, a proposal was put forward to merge them. The marketing and communications teams from both sides worked seamlessly to ensure the essence of both events remained intact, creating a powerful alliance that leverages the strengths of each, Agblor said.

Driving Advancements in Breeding For Agblor, the partnership with AgSmart has tremendous potential to drive advancements in breeding and other technology. With technologies like drones and imaging becoming integral to phenotyping, breeding is no longer confined to vast fields to assess thousands of plants manually. Instead, it benefits from the data-rich insights brought about by smart technologies. These advancements make breeding more efficient, precise, and instrumental in shaping the future of agriculture.

Overcoming Challenges Together While the partnership between Olds College and Ag Smart has been a resounding success, there are challenges on the horizon. Securing stable funding for long-term breeding initiatives is crucial to sustain progress. The college is committed to navigating these challenges and investing in agriculture’s future sustainably, Agblor said.