Pace of Soybean Exports to China Down Nearly 96% in New Marketing Year Amid Administration's Damaging Trade War

Press Release

U.S. Senator Heidi Heitkamp today released the following statement after new USDA data show a nearly 96 percent drop in the pace of U.S. soybean exports to China this marketing year, which began September 1. About 70 percent of North Dakota's soybeans have typically been exported to Asia, primarily China, but the administration's trade war has crippled this important market for North Dakota farmers.

"North Dakota farmers are not at fault for China's unfair trade practices, yet they're being asked to bear the brunt of the pain caused by the administration's trade war. That's not fair to our farmers or to our rural communities who rely on agriculture to keep them strong," Heitkamp said. "North Dakota soybean farmers have all but been cut off from the Chinese soybean market, the outcome farmers have been warning about for months. It's a shame the administration didn't listen to North Dakota farmers, who know their business and the importance of exports far better than anyone in Washington. From day one, I've been echoing the concerns I'm hearing from farmers and pushing for smart trade policies that hold China accountable while preserving markets for North Dakota goods. That's the responsible approach the administration should take to protect our farmers, workers, and rural economy."

At this time last year, the U.S. had exported 4.66 million metric tons of soybeans to China since September 1, according to USDA. This marketing year, a mere 201,700 metric tons of U.S. soybeans have been exported to China, a nearly 96 percent drop -- illustrating the damaging impact that the administration's trade war is already having on North Dakota agriculture.

While a small amount of U.S. soybeans were exported to China last week, the total -- 134,700 metric tons -- paled in comparison to the same week last year, when 1.37 million metric tons were exported, according to USDA data.

The steep decline of the Chinese market for U.S. soybeans has contributed to a decline of global U.S. soybean exports. While some nations are buying more U.S. soybeans than in previous years, it's not enough to make up for the market share lost in China. North Dakota's infrastructure is best positioned to export beans to China, making it harder and more costly for North Dakota farmers to sell their soybeans to other parts of the world.

As North Dakota farmers struggle to find a market for this year's crop, reports show that the administration's trade war is continuing to worsen the outlook for North Dakota soybean farmers. As CNBC recently reported, farmers are having trouble finding a place for this year's crop, 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.

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 farmers tackling soybean storage for the first time.

Compounding the loss of the Chinese market, the recent snowstorm in eastern North Dakota has set harvest back, delaying possible payments to farmers seeking assistance through the administration's trade mitigation program. Heitkamp has repeatedly pushed the administration to improve the assistance package to make it more equitable for North Dakota farmers, and last week reiterated her request to allow farmers to apply for assistance before their crops come off the field due to the added hardship caused by the snowstorm, which dumped up to 19 inches in some areas.

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

The trade war's impact could have negative consequences on the ag economy 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
Cass County was the top soybean producing county in the United States last year, according to the North Dakota Soybean Council

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