Two months after soybean prices plunged to a 10-year low as a result of U.S. trade disputes with China, Louisiana farmers—now in harvesting season—are living in uncertainty with no resolution in sight as tensions between the two countries escalate, Business Report details in a new feature.
What they do know: Federal aid is not a long-term answer.
West Baton Rouge Parish farmer Raymond Schexnayder recently began harvesting his 2,200 acres of soybeans, which is expected to produce some 150,000 bushels. But with prices down $2 per bushel from last year due to trade tensions, Schexnayder is looking at a whopping $300,000 loss on this year’s crop.
The U.S. Department of Agriculture announced in late August $4.7 billion in direct payments to farmers to help offset losses, with most of the aid, $3.6 billion, going to soybean farmers. The payments will amount to $1.65 per bushel on 50% of their 2018 production.
There may be a second round of payments if deemed necessary, officials say.
But for Schexnayder, the aid makes up less than half of his expected losses.
“It’ll help, but it won’t make you whole again,” he says.
China imports roughly $20 billion in U.S. agricultural commodities annually, and nearly 60% of the Louisiana soybean crop is sold to China.
Soybeans are a major commodity in Louisiana. Encompassing roughly 1.4 million acres, soybeans are the second largest row crop in the state, with a gross farm value of $800 million. It’s second only to sugarcane, which brings in nearly $1 billion in Louisiana.
