Trade Wars have consequences as small farmers can’t hold afford to hold on to family farms…
China, the world’s biggest soybean importer, has bought a record amount of soybeans from Russia while canceling multiple soy shipments from the U.S. in retaliation to the Trump administration’s tariffs on Chinese goods, reports Bloomberg.
Why it matters: American farmers are heavily dependent on soybean production as a source of revenue. In 2016, soybeans accounted for 12% of exports from the U.S. to China. But that stream is now dissipating with China using subsidies incentivizing their own farmers to cut reliance on U.S. soybeans.
But, but, but: Russia supplies less than 1% of China’s soybeans.
Go deeper: Soybeans are a political ground zero in Trump’s trade war with China.
Large agribusiness corporations, including foreign companies, lie in wait to buy out family farms going bankrupt. Crisis is not a strong enough word to describe the current situation of family farms. Waves of consequences. When a small farm goes bankrupt, the entire farming community and all farm-related businesses feel the pain.
Russia Selling 2.5 Million Acres to China for Soybean Soybeans were one of the first major casualties in the ever-escalating trade war between the U.S. and China. Russia is hoping to take advantage of the situation and cut deals with Chinese agribusinesses to make up for lost supply.