‘Chasing our tail’: Soybean growers look for opportunities in challenges

DENVER — From issues impacting the farm economy, including record costs for labor, interest and taxes, to trade and biofuels, there a lot of challenges facing farmers today.

But there also are opportunities, said Caleb Ragland, president of the American Soybean Association.

It starts with getting a new farm bill through Congress — finally.

“We’re kind of chasing our tail on this one,” Ragland said. “We started working on a five-year farm bill nearly three years ago, and we’re still fighting that fight and once again we’re in the situation where we got another extension at the end of 2024.

“But we are working hard to get a five-year farm bill reauthorized and we need meaningful, comprehensive legislation that addresses many of our industry priorities, which is improving the Title I farm safety net, protecting crop insurance, increasing investment in trade promotion programs that expand and diversify our trade, and protecting the soy checkoff.”

It also is imperative that the United States maintains a positive relationship with China, the farm leader said.

“We all know that China is soy’s largest export destination and we need to invest in our trade promotion there,” said Ragland, who grows 4,000 acres of soybeans, corn and winter wheat in Magnolia, Kentucky.

“Tariff talks are always making us nervous. We went through the trade war back in 2018-2019. ASA does not ever support tariffs as a negotiation tactic, regardless of political party.

“Soybeans are the No. 1 export crop for the U.S. and our producers face disproportionate impacts from the disruptions in trade flow that we experience. Foreign soybean producers have clearly seen that they can step in and meet the additional international demand that results from a trade war, and that has caused us to lose market share for good and we haven’t gotten that back.

“In 2018, the trade war resulted in losing over $27 billion for U.S. ag — 71% of that was soybeans.

“The impacts are even greater than loss of sales. Retaliatory tariffs broke down hard-earned relationships that had taken years to build with international buyers, creating lasting damage that we’re still dealing with.”

ASA and the National Corn Growers Association recently conducted a study that showed if China reinstates those tariffs, U.S. soybean exports could decline by 14 million to 16 million metric tons annually — more than a 15% drop from expected trade levels.

“It’s a top priority for ASA that the administration and policymakers prioritize the interest of U.S. soybean farmers in their trade discussions,” Ragland said.

“We simply must have these policies in place that protect market access and ensure long-term stability for U.S. soybean production.”

He added a warning: “Unlike the last round of tariffs in 2018, U.S. farmers are operating in a much tougher economic climate. We no longer have savings to fall back on, and if things go south again with prices, the tariffs are going to bring devastation to agriculture, particularly to soybean farmers.”

Q&A

Ragland and ASA Vice President Scott Metzger, who farms 1,400 acres of soybeans, as well as corn, wheat and malting barley, in Williamsport, Ohio, answered questions from reporters during a press conference at the Commodity Classic in Denver.

What concerns do you have about the Environmental Protection Agency’s regulation of pesticides created through biotechnology?

Ragland: “We’ve got to have a toolbox that’s full of tools that we can use and allow us as producers to be good to the environment and to be good producers of soybeans. We support EPA being compliant with its legal responsibilities under the Endangered Species Act, but the herbicide strategy and other EPA proposals most likely would mean new costs and burdens to U.S. farmers.

“For example, EPA has a process for determining whether a pesticide poses a risk that doesn’t use the best available science, which is required by law; instead, the agency uses extremely conservative assumptions that overstate the risk. By using available real-world data, EPA could issue more appropriate regulations that are workable for agriculture and wildlife while still meeting legal obligations.”

Where does soy fit in the new administration’s “Make America Healthy Again” policy, led by Robert F. Kennedy Jr. as secretary of the U.S. Department of Health and Human Services?

Metzger: “We need to use science- and risk-based assessments grounded in credible research. The new secretary of health that oversees the Food and Drug Administration has been clear he’d like to ban soybean oil for food use.

“FDA has recognized the health benefits of soybean oil through its scientific review process. That review supports the claim of replacing saturated fats with unsaturated fats in soybean oil to reduce the risk of coronary heart disease.

“And European nations, including Germany and Austria, also suggest using seed oils over other forms of fat.

“Our industry has done its own research to make soybean oil even healthier. We have developed a new high oleic soybean, and according to SNI Global, the high oleic soybean oil has an even better fat profile than conventional soybean oil for a longer shelf life and is grown by U.S farmers for the benefit of U.S. agriculture.

“But all the work would be undone if our leaders ignore the science supporting soy oil.”

What amount of federal support is needed by farmers to offset market losses in a trade war?

Ragland: “The bottom-line, take-home message is we don’t have any room for error in getting this wrong. The farm economy is in a bad place, and we’re looking at inflated production cost, we’re in a downward trend with commodity prices, we’ve had a lot of natural disasters around the country — you put all that together, we just don’t have anything to fall back on.

“We are appreciative of the payments and programs that were put in place during the last trade war, but the message we want to clearly give is, ‘Let’s avoid the trade war. Let’s find ways to promote trade and use the carrot instead of the stick and find positive ways where we can all win and keep the economy working strong and promote one of our greatest assets, which is our ability to produce. American farmers are great at that. Let’s amplify that ability.’ That’s what needs to happen.

“My family is depending on it and hundreds of thousands of other farm families across the country are depending on not being the sacrificial lamb in the name of what we might accomplish with punishing our enemies.”

What is the outlook for the federal Renewable Fuel Standard and the biofuels market?

Metzger: “Soybean farmers have worked in tandem with other stakeholders in the biofuel industry for years to establish a robust market that includes our crop, and we continue to see innovations in the field where soy can be used as a viable feedstock.

“The success of the biofuels industry depends largely on federal programs that add value to the fuels. They have bipartisan support, but we still see issues arise in Congress, with either pitting biofuels against each other or they limit production in favor of the petroleum industry.

“The Biden administration missed the deadline in 2024 to release the renewable volume obligations for 2026 and beyond. The current RVOs for 2023 through 2025 are higher than the previous blend volumes, but they didn’t accurately estimate the production capacity and industry growth.

“So, we’re asking the Trump administration to move fast and release the draft rule to set the RVOs for 2026 and future years to provide certainty to the industry.

“Another issue is the small refinery exemptions. SREs create uncertainty for the industry, because their waivers subtract volumes from the annual RVOs and result in lower RIN credits. We have consistently opposed granting SRE waivers both through the administration’s action and legislative action.”

Why is sustainable aviation fuel so important?

Metzger: “SAF is an exciting opportunity that could be a major shot in the arm long-term for the American soybean farmer. We desperately need a new source of demand, and I can’t think of anything that is more patriotic than taking American-grown soybeans and turning them into fuel that we use domestically.

“Those dollars turn over and over in our rural communities. It’s not only good just for ag. It’s good for America as a whole. That is a great story to tell — a dollar that’s produced on the farm turns over six to eight times locally.

“In our rural communities, we need an injection of some new economic excitement because our whole country right now is struggling a little bit in places. We need jobs, we need opportunity and we need our hardware stores to be strong and we need our schools to be strong.

“We want to see our churches and community organizations stay strong. A lot of things are drying up. SAF is a wonderful opportunity to heal a lot of those wounds.”