Soybeans are the second largest crop in the country and in South Dakota.
According to the U.S. Department of Agriculture, the E.U. imports $1.6 billion worth of soybeans. China buys almost eight times that amount.
Kevin Scott, who’s farms with his wife on the Scott Family Farm explained that the tariffs will affect his bottom-line.
“If we take a 25 percent hit, we will probably have to back off production and we can’t continue to produce at a loss,” Scott said.
Soybeans are down about $2 dollars a bushel, which has accounted for several hundred million dollars of losses to South Dakota’s economy. But Senator Mike Rounds thinks the new deal was positive.
“It’s good news that the president is moving and trying to put together new trade deals,” Senator Rounds said.
He is optimistic about the soybean deal America made with the European Union.
“This is a step in the right direction and it does show a change in administration policy, which is positive for our producers in the upper Midwest,” Rounds said.
Senator John Thune agrees that the deal with the E.U. will help, but “this is a small amount of the overall volume of soybeans that we raise every year that we need to export and we still need markets like China to be open to us,” Senator Thune said.
He says he’s counting on the president to move quickly to open more markets and succeed with other trade deals.