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Impacts of Trade War on Soybeans Farmers

America’s soybeans farmers have felt the brutal force of China’s retaliation in the trade

war initiated by President Donald Trump since 2018. China makes the largest market for

soybeans produced in America, where states such as Dakota heavily rely on the Chinese market

to sell their produce. Dakota, as a state, voted for President Donald Trump, who promised

soybean farmers subsidies and a good market for their produce. North Dakota farmers only

specialized in soybean farming, unlike the southern states, where farmers practiced both soybean

farming and livestock keeping. Therefore, the closure of the market in China severely affected

North Dakota farmers. China introduced the retaliation tariffs, which targeted soybean, cotton,

and cattle farmers (Plume 2019). Dakota has experienced deep losses compared to other states

because other southern states were able to shift to other markets such as Mexico and also embark

on complimentary farming such as livestock and poultry farming.

Trump’s administration provided farmers with $28 billion as farm aid funds to

compensate farmers for losses made as a result of the trade war. However, farmers in North

Dakota, demonstrated as they felt the sharing rates of the fund were much lower compared to

southern states, whose exports rely much less on China (United Soybean Board 2020). The

government defended the compensation rate citing that southern states grow a variety of crops

compared to North Dakota State, which specializes in soybean farming only; hence southern

states deserve a high price of compensation.

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The closure of the soybean market in China left soybean farmers in North Dakota, and

other states with surplus produce in stores with no market. The crop also lost demand as a result

of collapsed talks between the U.S. and China to end the trade war. The loss of demand for the

product has also made farmers hold their future investments towards soybean farming.

Additionally, rail companies that relied on revenues collected from soybean farmers'

transportation services are also experiencing losses as a result of trade. Therefore, unless trade-

war between the U.S. and China comes to an end, farmers in North Dakota and southern states

will continue facing economic hardships.

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Works Cited

Plume, Karl. “On the Front Lines: Trade War Sinks North Dakota Soybean Farmers.” Reuters,

Thomson Reuters, 22 Aug. 2019, www.reuters.com/article/us-usa-trade-china-

soybeans/on-the-front-lines-trade-war-sinks-north-dakota-soybean-farmers-

idUSKCN1VC0ZX.

United Soybean Board. “Meet Your U.S. Soybean Farmers: Soy Connection.” Default, 2020,

www.soyconnection.com/the-story-of-us-soy/meet-your-us-soybean-growers.