Soybean Prices Drop as Trade Tensions Escalate

By Scout Nelson

South Dakota soybean farmers are feeling the strain as the United States and China remain locked in a trade dispute that continues to limit exports and reduce prices. Many producers have travelled to Washington, D.C., to share concerns and urge action, but answers remain slow in coming. 

President Donald Trump has imposed a 30 percent tariff on Chinese goods, saying the policy protects American farmers. China has responded by turning to other suppliers, including Brazil, and sharply reducing purchases of U.S. soybeans. According to the U.S. Trade Representative, South Dakota exported $1.4 billion in soybeans in 2023, with China as the largest buyer. Farmers say the loss of that market is hitting their income hard.

Chad Johnson, a corn and soybean farmer from northeastern South Dakota, says federal officials tell growers to trust the system and wait for long-term benefits. But with farm bankruptcies up more than 90 percent from the year before, he believes help is needed now. He adds that there is still no clear plan for direct payments or a new Farm Bill to offset losses.

The situation recalls 2018, when Chinese tariffs triggered federal aid payments to farmers. While those payments provided temporary relief, farm debt and delinquencies still increased. Farmers today fear another round of the same hardship without new support.

Andrew Streff, a soybean farmer from Salem, South Dakota, notes that U.S. soybeans remain some of the cheapest in the world when shipping and exchange rates are considered. He believes China’s refusal to buy is political rather than economic. Streff urges fellow farmers to adapt by tightening budgets, adjusting crop plans, and hedging risk when market opportunities arise.

Despite challenges, farmers remain hopeful. Many are exploring new uses for soybeans, including biofuel and biodiesel production, to create more demand. As Streff says, farmers plant each spring with faith in the future and optimism that markets will recover and new opportunities will emerge.

Photo Credit: gettyimages-zoran-zeremski