In today’s evolving trade landscape, Missouri soybean farmers continue to face uncertainties surrounding tariffs and global market access. While trade policies fluctuate with each administration, the need for reliable export markets remains a top priority for soybean growers. With China, Mexico, and the European Union as key buyers of U.S. soybeans, any shifts in tariff structures can impact farm income and long-term planning.
Understanding the Current Tariff Climate
The current administration has prioritized enforcing fair-trade relationships and has placed new tariffs on strategic imports. The discrepancy in trade is apparent in the agricultural industry. In fiscal year 2025, the U.S. will face a record agricultural trade deficit of $46 billion. While there is efficacy in addressing this disparity in trade and encouraging domestic consumption, some key sectors of agriculture, including soybeans, beef, pork, and poultry, rely on export markets to consume a significant portion of the supply produced by U.S. farmers.
This marketing year, the U.S. soybean industry will export approximately 40% of whole soybeans and 30% of soybean meal. Retaliatory tariffs from foreign buyers can reduce U.S. soybean competitiveness, leading to lower prices and lost opportunities for farmers. Missouri Soybeans continues to share the message of the importance of reducing trade barriers for soybean farmers to ensure we are capitalizing on key markets worldwide.
Strategies for Missouri Soybean Farmers
Despite these challenges, there are proactive steps Missouri Soybeans is taking to find new demand opportunities for farmers:
- Strengthen Domestic Demand – Expanding the use of soy-based products, including biodiesel, livestock feed, and food-grade soybeans like high oleic, can help offset export uncertainties. Building more domestic demand safeguards against trade disruptions and brings more value-added opportunities for the state’s agricultural economy. Key initiatives for Missouri soybean demand include growing meat processing capacity, expanding soybean crush opportunities, supporting and growing Missouri’s five biodiesel plants, rebuilding our dairy industry, increasing soybean meal inclusion rates, and developing our aquaculture feed demand.
- Diversify Export Markets – While China remains a top buyer, Missouri soybean farmers can benefit from expanding into alternative markets such as Southeast Asia, Latin America, and Africa. Missouri Soybean Merchandising Council (MSMC) partners with trade organizations to grow and diversify export markets while working to secure markets for Missouri farmers directly. Efforts from organizations like the U.S. Soybean Export Council (USSEC) and the World Initiative for Soy in Human Health (WISHH) are helping to open doors in new regions, address market access barriers, and grow new markets. Examples include growth in Egypt and the European Union. MSMC farmer leaders have been active in recent years in places like Central and South America to expand opportunities for direct Missouri and Midwest exports, working with our in-state exporters to capitalize on growth markets.
- Engage in Policy Advocacy – The Missouri Soybean Association (MSA) is working with the American Soybean Association (ASA) to shape trade policies by engaging with state and federal lawmakers. Our advocacy initiatives give farmers a voice in trade discussions, pushing for fair tariff policies and expanded market access. Forecasting these issues and knowing their difficulty, MSA has made it a priority for several years to find policy changes to secure and grow domestic markets. Be it through improved in-state biodiesel production incentives or recent trips to Washington, D.C., to fight for the value of soybean oil within the Clean Fuel Production Tax Credit, we aim to pass meaningful policy that creates demand and adds value for the Missouri soybean crop.
Farmers can mitigate risk and maximize opportunities to protect their operations with these strategies:
- Leverage Risk Management Tools – Crop insurance and futures contracts can help farmers hedge against price volatility caused by trade disputes. Understanding and utilizing these tools can reduce financial risk.
- Quality and Grain Sampling—International buyers continue to encourage the difference between U.S. soybean quality and other destinations. In times of significant competition, quality can be a differentiator in several key markets. Focusing on quality at the farm level provides Missouri farmers with advantages in international markets. Additionally, pay attention to grain sampling procedures at elevators to ensure correct practices are utilized.
Looking Ahead
While tariffs remain a challenging reality, Missouri soybean farmers are resilient. By focusing on market diversification, domestic growth, and policy engagement, farmers can strengthen their operations amid shifting trade policies. Staying informed and involved will ensure Missouri’s soybean industry’s profitable and sustainable future.
For more resources and trade updates, visit Missouri Soybeans at mosoy.org.