The Impact of Trade Disputes on South Dakota Soybean Farmers

By Joshua Haiar

SALEM — This week, South Dakota farmer Andrew Streff has been spending upwards of 12 hours a day in his combine, harvesting amber rows of soybeans he planted earlier this spring. But as he works, his mind frequently drifts to the ongoing trade disputes affecting his livelihood, particularly the tense relationship with China.

The nation has effectively boycotted U.S. soybean purchases in retaliation for President Donald Trump’s tariffs. “China hasn’t purchased any soybeans from the United States this year, thanks to the president,” said Streff, who farms near Salem. “Our beans are the cheapest in the world, about $2 less per bushel than competitors, but this trade war is keeping them out of China — our biggest customer.”

Robert Lee, another farmer harvesting 300 acres of soybeans near De Smet, noted that many are hesitant to directly blame Trump for the falling bean prices. “But the fact is, China imported 120 million metric tons of soybeans this year and not one bushel came from the U.S.,” Lee said. “That’s a direct result of this trade war.”

The Federal Response

Farmers in the region recall similar impacts during Trump’s first term, which prompted Congress to respond with $28 billion of aid for farmers in 2018 and 2019, as reported by the Congressional Research Service. This financial support served to offset farmers’ lost income through direct payments.

U.S. Senate Majority Leader John Thune, R-South Dakota, expressed to a crowd in Rapid City on September 26 that federal assistance may once again be required. “I have talked to the president about this because some of this is a result of tariff policies, trade relationships, etc.—China’s not buying soybeans today,” Thune stated. “Inevitably, it seems likely they’ll end up doing what we did a few years ago in response to market losses.”

Thune added, “None of us want to see this, but some of that tariff revenue will probably be directed towards assisting farmers.” The upcoming aid could be significant; Trump’s tariffs are projected to increase federal tax revenues by an estimated $171 billion this year, according to a recent report by the Tax Foundation.

On October 2, Treasury Secretary Scott Bessent confirmed to CNBC that the Trump administration is pacing plans to support farmers, particularly in the soybean sector. “Farmers should expect some news on Tuesday about substantial support for our farmers, especially soybean farmers,” Bessent reiterated.

The Current Situation

Jerry Schmitz, Executive Director of the South Dakota Soybean Association, highlighted that U.S. soybean prices have dropped over a dollar per bushel from last year, falling from above $11 to around $10. In South Dakota, prices are even lower, by 80 cents to $1.35. This decline has severely affected local grain elevators and export volumes through the Pacific Northwest.

“A $1 drop in price corresponds to approximately $250 million in lost income for South Dakota farmers based on the number of soybean acres planted this year,” Schmitz noted. Furthermore, he elaborated that tariffs impact farmers beyond diminished sales. For instance, increased fertilizer prices are partly due to inflation, but also exacerbated by tariff implementations.

Streff, who also works as a commodities broker in Mitchell, acknowledged that farmers who locked in prices with grain buyers months ahead of harvest weathered the storm better, but added, “You were gambling on the future.”

The farmer expressed hope that lessons were learned from past experiences, stating, “A lot of farmers were hoping the president learned from the last time around. But it didn’t surprise me — he campaigned on doing these tariffs. The U.S. elected someone who likes to pick fights with other countries, and now we’re in the middle of it.”

Furthermore, farm leaders and state officials are taking proactive measures to create new uses for domestic soybeans, such as the establishment of a $500 million soybean processing plant in Mitchell aimed at producing renewable diesel and livestock feed. Streff, however, remained skeptical, noting, “It’s not going to solve all our problems.”

Looking Forward

Thune echoed Streff’s sentiments while in Rapid City, emphasizing the importance of re-establishing trade with China. “We need to get the Chinese market back at some point because we sell a ton,” he said. “Sixty percent of our soybeans are exported, mostly to China. We’ve got to have those export markets.”

As harvest season progresses, South Dakota’s soybean farmers remain deeply impacted by international trade policies, hoping for favorable outcomes and a return to normalcy in their vital supply chain.

South Dakota Searchlight launched in 2022. The Searchlight is an affiliate of States Newsroom, the nation’s largest state-focused nonprofit news organization, supported by grants and donations. The staff of the Searchlight retains full editorial independence.

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