Record soybean crop expected amidst tariffs

It looks like the conditions to grow soybeans in Indiana have never been better.

Hoosier farmers are on pace to produce a record crop according to the USDA’s latest crop production survey.

However, the conditions are not good when it comes to selling those beans.

“Since June soybean prices have dropped off about $2 a bushel, which equates to, with a normal yield, would equate to about $12,000 for a farm that's raising 100 acres of beans.

Which is quite an income drop,” said Purdue Extension Agriculture Educator Jeff Burbrink.

The income drop of about 20 percent is being blamed on tariffs and the trade war with China.

“More than 30 percent of the beans that are grown in the United States end up overseas in China, just China alone so it's a huge matter,” Burbrink said.

The situation is enough to turn any farmer into a bean counter.

“They're going to have to get their soybeans from somewhere. China right now is paying approximately, at today’s prices, about $2.60 more for Brazilian beans than they are for American beans,” said Kyle Tom with Tom Farms in Leesburg.

Tom is one of those farmers who feels the pain, yet feels time is on his side. “It’s going to hurt the American farmer right now but in the long term forecast, countries have got to buy soybeans from somewhere.”

Tom says China has a surplus of about two years’ worth of inventory of soybeans, “and they could “not buy” any soybeans for a year and they’d be fine, but they need to replenish that, soybeans, so they can feed their people, their fish, and their livestock.”

Tariffs have also been placed on pork. Burbrink says pork futures have since cropped about $16 per 100 pounds.