by Kirk Leeds, CEO, Iowa Soybean Association
Ankeny, IA -- A sign hanging in the washroom of Full Circle Ranch near Earlham caught my eye. It read: "We feel most comfortable when things are certain. But we feel most alive when they are not."
I was at the ranch with senior members of the Iowa Soybean Association staff for our annual retreat. The quote surfaced often in our discussions, perfectly capturing the spirit of growing as individuals and as a team. But it also resonated on a deeper level, offering perspective on how the U.S. soybean industry might respond to the many headwinds it faces.
At the top of the list is a new partnership between two giants of global soybean production and consumption. Called "Soy China," the initiative seeks to create a dedicated soybean supply chain in Brazil that aligns with China's sustainability and quality standards.
In essence, Brazil will grow soybeans tailored specifically to China's import requirements, while China invests heavily in Brazil's infrastructure -- from roads and rail to ports, bridges, and commodities storage.
Soy China introduces an unprecedented level of specialization and exclusivity to the country's soybean imports. What began as a trade preference is evolving into a formal, customized pipeline for Brazilian soybeans -- further diminishing America's access to China, the world's biggest soybean buyer.
This bilateral arrangement between the world's largest soy producers and consumers has been more than a decade in the making. Escalating tariffs between the U.S. and China have only hastened China's determination to reduce, if not eliminate, its reliance on U.S. soybeans.
The reorganization of global soybean supply chains has caused U.S. soybean prices to plummet at a time when production costs remain historically high. The combination makes soybean production unprofitable. Unlike short-term seasonal price pressures, the initiative is a long-term, structural change. U.S. soy must accept this change and adapt. And it is.
The 2024-25 marketing year for U.S. soy closed with 1.84 billion bushels in total sales, a 13% increase from the previous year. This included record sales to all destinations other than China. Diversifying U.S. soy's export strategy must continue, seeking new long-term agreements in Central America, Egypt, Vietnam, India, Indonesia, Africa and other markets.
As we press federal officials to modernize trade policy with proactive agreements that open markets and reduce dependence on a single buyer, we must also accelerate investments in America's trade infrastructure to keep Iowa and U.S. soy cost competitive.
The U.S. Soybean Export Council (USSEC) and other industry bodies must continue aggressive promotion of the quality and value of American soybeans, emphasizing transparent supply chains, sustainable production practices and consistent standards.
At the same time, we will continue to tout the benefits of increased soybean meal inclusion rates in pig diets, incorporating high oleic soy in the feed rations of Iowa's expanding dairy herds, and growing domestic livestock and poultry production and global usage of soy-based biofuels.
Being uncomfortable isn't something we desire. But it's where the greatest growth happens. That's true in life and will be for the soybean industry.