Trade Wars have consequences as small farmers can’t hold afford to hold on to family farms…
China triples Russian soybean imports as it cuts reliance on U.S.
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{5fc40a96f14c4a6aa4c2a32569b0a57dcc67c0b31eb04c341474283f11b6cdd2} 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{5fc40a96f14c4a6aa4c2a32569b0a57dcc67c0b31eb04c341474283f11b6cdd2} of China’s soybeans.
Go deeper: Soybeans are a political ground zero in Trump’s trade war with China.
Saving America’s Family Farms – democracychronicles.org
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.