BIRCH RUN, Mich. (WNEM/Gray News) – The president of the American Soybean Association said the Trump administration needs to make an immediate trade deal on soybeans with China.
China is the world’s largest soybean customer and typically the top export market for U.S. soybeans. But a 20% retaliatory tariff imposed by China on U.S. soybeans has resulted in zero sales to China during the new crop marketing year.
WNEM talked with Allison Thiel, who is the owner of Don Morse Farms in Birch Run, the treasurer of the Michigan Soybean Association and the vice president of the Saginaw County Farm Bureau, to find out what local soybean farmers have to say.
In a normal year, up to half of all U.S. soybeans are exported to China.
According to the president of the American Soybean Association, China has now turned to Brazil and Argentina for soybeans at the expense of U.S. farmers. The president said soybean farmers are feeling shut out.
Thiel is holding out hope the Trump administration can get something done soon. She said aid to farmers works in the short term but will not fix the overall issue. She also said farmers want a stable and sustainable market for their commodities.
“Most farmers here are optimistic and hopeful that the current administration is going to make some type of deal, some type of headway here in the near future to help us farmers get through fall,” Thiel said.
Thiel said that besides working out a trade deal, it would also be helpful for Congress to drive demand for U.S. soybeans and domestically grown products by incentivizing biodiesel sale and production.
“We’re in a unique place in Michigan to import and export goods,” Thiel said. “And we really need to focus on soybeans here, and new and emerging markets.”
Even though U.S. soybean sales to China are at a standstill, Thiel believes farmers will persevere, for now.
“Most growers will find ways to market their crops in a way to try to help offset some of that,” said Thiel. “But I also think that it’s probably going to be short-term. And I’m hopeful that something will correct itself in the market.”
In regard to his soybeans, another soybean farmer said “someone will buy them.” Thiel agrees with that.
“We also have really great quality. And a lot of countries really like having U.S. soy because they’re a good quality product,” she said.
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