As crop planting season nears, Minnesota farmers keeping eye on escalating international trade battle

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Local farmers concerned over escalating trade war

On Monday, President Donald Trump threatened to increase tariffs against China again if Beijing doesn’t remove the retaliatory tariffs it placed on U.S. products, which includes soybeans.

Soybean exports account for more than 25% of the state of Minnesota’s $9.2 billion in international trade.

Around one in four rows of the state’s soybeans are sent to China, according to the Minnesota Soybean Growers Association.

“The markets dropped, and he lost thousands of dollars on his semi-load of soybeans,” recalled Minnesota Agriculture Commissioner Thom Petersen in a recent conversation with a farmer.

Petersen says South American soybean producers could try to increase their market position internationally with the uncertainty in the U.S., meaning Minnesota soybean farmers will need to pitch buyers as to why their product stands out.

“We have to continue to push that we have a superior product. We have a great farming system in Minnesota and the United States. We have reliable food safety. Those are the things we are going to have to work on to find marketplaces,” Petersen said.

“In 1885, my great, great grandfather settled here,” said fifth-generation farmer Ryan Mackenthun.

The McCleod County family farm grows corn and soybeans on 2,200 acres of land.

“These markets are definitely one thing, wondering what tomorrow will bring,” Mackenthun said about the uncertainty of farming. “To make ends meet, in times like these, we’re already below cost of production on soybeans.”

Planting season begins in a matter of weeks, as the family’s considering more corn, than soybeans to grow, trying to guess how the markets will be down the road.

“I really want to pass along to the next generation,” Mackenthun said. “It’s really hard to do when you have all these stresses and pressure.”

The Associated Press contributed to reporting.