Heitkamp: Trade War Worsens as North Dakota Soybean Farmers Struggle to Secure Storage for Bumper Crop

Statement

U.S. Senator Heidi Heitkamp today released the following statement as reports show that the administration's trade war is continuing to worsen the outlook for North Dakota soybean farmers.

"It took North Dakota soybean farmers decades to build relationships and market their product in China, but the trade war threatens to derail that hard work over the course of just one season," Heitkamp said. "With zero orders from China -- which is typically the largest buyer of North Dakota soybeans -- and a surplus of last year's crop still occupying bins and grain elevators, this year's crop literally has nowhere to go. Farmers working hard all year toward a payday are instead worrying about how they'll make ends meet. North Dakota farmers are some of the most hardworking people you'll ever meet, and I won't sit back silently while they're being treated like collateral damage in this trade war."

According to a North Dakota State University analysis reported in Agweek, without the trade war with China, soybean prices would be near $13 instead of the current $7 per bushel.

As CNBC reports, farmers are having trouble finding a place for this year's crop, as China cancelled contracts for 2017's crop when the trade war began to escalate, leaving the beans occupying grain elevators and bins. Elevators are holding 68 percent more of the previous season's crop than at this time last year, limiting space available to store the 2018 crop, which hasn't had a single order from China.

Soybeans are particularly hard to store, especially if grain bins are not an option for a farmer. NDSU recently released resources and helpful tips on soybean storage for farmer tackling soybean storage for the first time.

The trade war's impact could have negative consequences for up to five years, according to William Wilson with NDSU. Soybeans are an important part of North Dakota's ag economy. For example:

71 percent of North Dakota Soybeans are Exported to Asia, Primarily China
Total value of North Dakota's 2017 Crop: $2.1 billion
North Dakota is ranked fourth in the nation for the number of soybean acres planted this season according to a September USDA Crop Production Report.

Source