Soybean tariffs weigh heavily on local farmers
LEXINGTON, Ky. (WKYT) – China, the largest buyer of American soybeans, has imposed a 20% tariff on U.S. soybean exports in response to tariffs placed on Chinese goods by President Trump earlier this year. The American Soybean Association reports that this retaliatory move has led to zero U.S. soybean sales so far this crop year.
“The soybean market is almost like the corn market as well, but the soybean market is terrible,” said Brennan Gilkinson, a soybean farmer in Fayette and Clark counties since 2000.
Gilkinson says aside from the 2012 drought, this is the worst period he has faced in farming.
“The prices are driven by price and demand. We’d like to say it’s all tariffs. Tariffs has a lot to do with it,” he added.
With China now turning to Brazil and Argentina for soybeans, Gilkinson says the impact has been devastating since the largest importer of U.S. soybeans hasn’t purchased any this year.
University of Kentucky Assistant Extension Professor Grant Gardner believes this could be part of China’s broader negotiating strategy.
“If you look at the base of the American farmer—they’re loud. So, the ag lobby is really loud. It’s going to be in the president’s ear constantly. One easy way to constantly push back at the United States is to make sure they’re not helping us out by buying beans,” Gardner explained.
Looking ahead, Gilkinson says he doesn’t know what he will do next season, but he refuses to give up.
“You always fear the worst but hope for the best, so we’ll keep on digging,” he said.
Gilkinson also noted that poor weather has added to the struggles for Central Kentucky soybean farmers this year. He hopes the tariffs will be lifted soon.
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