In the latest episode of “Talking Trade,” Doug Rebout of the Wisconsin Soybean Association discusses the impact of tariffs and the Iran war on U.S. soybean farmers.
Rebout, who’s also chair of DATCP and partner of Roger Rebout & Sons Farms in Janesville, notes corn and soybean farmers in the area can’t easily adjust what their operations produce based on short-term trends.
“We know we’re going to have our good years, we know we’re going to have our bad years,” he said. “With farming, you can’t make major changes year to year on what we’re doing with crops.”
With China not purchasing as much of the U.S. soybean crop amid trade tensions, the industry is looking elsewhere for potential export markets, Rebout said.
“One of the things that’s really helped with that is the DeLong port in Milwaukee, having that, you know, here in Wisconsin has been huge for Wisconsin ag products,” he said, adding “it opens up another market taking it out the St. Lawrence Seaway, and kind of opens up that northern Africa, European, Ireland market a little bit for us.”
He argues “we need to look at more markets” rather than being so reliant on just one for the stability of the ag sector.
“And also more emphasis on just trying to find more domestic uses here in the U.S. so we’re not so reliant on trade,” he said.
Meanwhile, disruption of trade through the Strait of Hormuz is affecting the supply of fertilizer and other inputs for corn farming. While most farmers had already acquired what they needed for this year’s crop, the outlook for next year is more clouded, Rebout said.
“It’s going to be next year’s crop where we’re really going to be impacted, and even if the Strait opened up right now, the war stopped right now, it’s going to take six to seven months … to get it caught up,” he said.
Talking Trade is hosted by E.M Wasylik Associates Managing Director Ken Wasylik and M.E. Dey & Co. President and Managing Director Sandi Siegel and sponsored by the Dairy Farmers of Wisconsin, Carroll University and Michael Best Strategies.
