Soybean farmers face crisis as China halts US crop purchases

MONROE, N.C. (QUEEN CITY NEWS) — President Donald Trump is considering a bailout for U.S. farmers as China, a top trade partner, has stopped buying many American crops.

Some see it as retaliation for the president’s tariffs.

“The trade war was obviously not consulted with us,” said Reggie Baker, who grows soybeans on Baker Brothers Farm, his family farm in Monroe. “We love trading with China.”

It appears soybean farmers like Reggie Baker won’t be doing any business with China this year.

China usually buys about 30 percent of the soybeans grown in the U.S. This year, the country is placing zero orders.

“If you’ve counted on revenue every year and it was always there and somebody kind of pulls the rug out from under you, it’s going to hurt. Every day you wake up, you’re stressed. You’re probably like a 9 out of 10 stress-wise every day.”

Without China as a customer, farmers say the supply of U.S. soybeans has ballooned. 

The increased supply has driven prices down, which Baker says is especially damaging since his costs, including seed and equipment, have gone up because of inflation.

North Carolina soybean farmers do have it a bit easier than farmers elsewhere, because exports aren’t as big a piece of their business.

Most of their customers are in-state poultry and livestock farms that buy the soybeans for feed.

Even so, Charles Hall, the executive director of the North Carolina Soybean Producers Association, says the industry can’t withstand a prolonged absence by China as a trading partner.

Hall says their national trade group, the American Soybean Association, is pushing Trump to make a deal, but Hall isn’t convinced China’s pull-out is retaliation.

“It’s not clear to me, in my opinion, that China is doing this as a tactical negotiating thing or if it’s more of a long-term strategic thing,” Hall said. “I’m undecided, and I’m sure a lot of other people are too.”

Whatever the reason, Baker and his fellow farmers are facing the consequences.

“You’re hoping at best to probably maybe break even,” he said. “Worst case scenario, on some farms you’ll be dipping into your equity and losing a little bit.”

Baker says many farmers are diversifying to create more revenue streams for themselves. He also raises cattle and grows corn and wheat.