A free trade agreement proposal between the U.S. and Panama, South Korea and Colombia involving soybeans could be a boon to Ohio soybean farmers, including those in Coshocton County.
However, livestock farmers who use soybeans for food and other businesses that use soybeans could be hurt by less local supply and increased prices if foreign demand is high.
According to the Ohio Soybean Association, 55 percent of Ohio's agricultural export total comes from soybeans.
In 2.010, that added up to $1.5 billion.
According to the association, if the trade agreements are passed and implemented, this could mean a possible $3 billion in additional U.S. exports, leading to economic development and jobs.
"The more markets that are opened up, the more advantage it is for the producer.
That's not necessarily for soybeans, but anything.
However, livestock farmers who use soybeans for food and other businesses that use soybeans could be hurt by less local supply and increased prices if foreign demand is high.
According to the Ohio Soybean Association, 55 percent of Ohio's agricultural export total comes from soybeans.
In 2.010, that added up to $1.5 billion.
According to the association, if the trade agreements are passed and implemented, this could mean a possible $3 billion in additional U.S. exports, leading to economic development and jobs.
"The more markets that are opened up, the more advantage it is for the producer.
That's not necessarily for soybeans, but anything.
If it is a true free trade agreement, it'll help those people on the other end too by making soybeans and its products more available to them.
"The more people that are buying, the better it is for the seller.
It's not only an advantage for farmers, but for anybody selling anything.
Paul Golden, of the Ohio State University Extension Office of Coshocton County, said about 20,000 acres in the county are devoted to soybeans, either as a constant crop or rotated with corn.
"The more people that are buying, the better it is for the seller.
It's not only an advantage for farmers, but for anybody selling anything.
Paul Golden, of the Ohio State University Extension Office of Coshocton County, said about 20,000 acres in the county are devoted to soybeans, either as a constant crop or rotated with corn.
He said only about 8,000 acres in the county were used for soybeans 15 years ago.
Golden said one reason for the increase is a raise in soybean prices. He said a bushel of soybeans is more than $14 today and was about $4.50 per bushel 15 years ago.
He also said soybeans cost less money to plant than other crops.
Additionally, soybeans are easier to farm than some other crops because of new weed control technology.
"It's great for the farmer who can show an increase in his margin and an increase in his profit," Golden said.
"The fact that we're getting a very high price for the soybeans is phenomenal for the cash grain producer.
My concern is how that trickles down to the livestock producer that has to purchase soybean meal."
He said one main use of soybeans is to make soybean meal as a food for livestock.
Livestock farmers who also grow soybeans still have to send the raw soybeans out to be processed then buy meal on the open market, Golden said.
Golden said the trend comes down to the basics of supply and demand. If the demand goes up without the supply going up, then that will raise prices overall.
"When we talk about free trade, there's always a trade off somewhere," Golden said.
"The price of corn is so high because of the ethanol demand.
Now, maybe, we're going to increase the demand for soybean meal.
What does that do to the livestock producer? Ultimately, what does that do to the consumer?"
Golden said one reason for the increase is a raise in soybean prices. He said a bushel of soybeans is more than $14 today and was about $4.50 per bushel 15 years ago.
He also said soybeans cost less money to plant than other crops.
Additionally, soybeans are easier to farm than some other crops because of new weed control technology.
"It's great for the farmer who can show an increase in his margin and an increase in his profit," Golden said.
"The fact that we're getting a very high price for the soybeans is phenomenal for the cash grain producer.
My concern is how that trickles down to the livestock producer that has to purchase soybean meal."
He said one main use of soybeans is to make soybean meal as a food for livestock.
Livestock farmers who also grow soybeans still have to send the raw soybeans out to be processed then buy meal on the open market, Golden said.
Golden said the trend comes down to the basics of supply and demand. If the demand goes up without the supply going up, then that will raise prices overall.
"When we talk about free trade, there's always a trade off somewhere," Golden said.
"The price of corn is so high because of the ethanol demand.
Now, maybe, we're going to increase the demand for soybean meal.
What does that do to the livestock producer? Ultimately, what does that do to the consumer?"
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