By Courtney Everett
Wisconsin’s 16,000 soybean farmers produce about $1.3 billion worth of soybeans every year.
These farmers are nervously eyeing new regulations proposed by the European Union that would restrict imports of crops that contain certain pesticides.
Shawn Conley, professor and the state soybean and small grain specialist at the University of Wisconsin-Madison, recently told WPR’s “Wisconsin Today” that the new regulations — along with a trade war and federal funding cuts — could hit some Wisconsin farmers hard.
“I think we’ll see another big subset of farmers who leave the industry,” Conley said. “Probably not willingly in the next couple of years.”
Doug Rebout, who was elected last month as the president of the Wisconsin Soybean Association, agreed that the EU’s proposed regulations could be a blow to the state’s farmers.
A family farmer, Rebout raises more than 4,000 acres of alfalfa, corn, soybeans and wheat in Janesville.
“We won’t be able to export as many soybeans — that can greatly affect our prices,” Rebout said.
Both Rebout and Conley spoke with “Wisconsin Today” about the potential impact of stricter regulations in Europe, the developing trade war and other issues facing farmers.
Soybean production proven to be ‘safe’ in Wisconsin, but export concerns grow
The U.S. Soybean Export Council estimates 238 million bushels of soybeans are exported from the nation to Europe annually.
In Wisconsin, soybeans averaged $9.92 per bushel in January, which was 39 cents higher than December’s price but $2.68 lower than last January, according to a new report from the U.S. Department of Agriculture’s National Agricultural Statistics Service. Rebout said the price of soybeans is shaped by international markets and demand.
Rebout is the chair of the state Department of Agriculture, Trade and Consumer Protection’s citizen board. He argued that Wisconsin’s farming practices are environmentally sound.
“What we’re doing here on our farms is safe,” he said. “We’re not going to do anything that’s dangerous — we’re running a business.”
Conley said stricter regulations under the European Commission would be burdensome to farmers who would have to spend more money to verify they are following the EU’s regulations.
“That would fall upon the farmer to verify that those practices are being done at the farm level,” he said. “That time cost would come back to the farm gate.”
“We have a very rigorous U.S. Environmental Protection Agency and regulatory process here in the United States to confirm that the products are environmentally safe and economical,” Conley added.
As leader of the UW Soybean Research program, Conley said his team works with a group of farm leaders who are already examining ways to integrate new technologies and conservation practices into their production.
“Then, we communicate that to a peer group who can help make those changes,” he said.
Conley said cover crops is one way Wisconsin farmers are looking to drive conservation efforts forward by preventing soil erosion and improving soil health.
Federal funding delays pose challenges to Wisconsin soybean farmers, other crop systems
Conley and Rebout said farmers are also feeling the effects of cuts by the Trump administration to foreign aid and conservation projects.
“You cut programs out there pushing our products, it comes back to us on our prices,” Rebout said.
He said a recent visit to the state Capitol brought soybean and corn growers together to discuss tax incentives for farmers.
Rebout hopes to also expand the use of biofuels across the state to expand access to clean energy and create jobs for local economies.
“That way we have more of a local market for our products,” he said.
With federal funds in question, Conley said farmers are unable to develop new innovative practices to grow their crops as they face declining crop revenues.
President Donald Trump’s tariffs against Canada, Mexico and China have also prompted a trade war that could further decrease exports of U.S. soybeans and other agricultural products.
And if farmers are suffering, so will the rest of the Wisconsin economy, Rebout said.
“If we make $1 we’re usually spending $1.25 to $1.50 — we’re putting it out into the local economy,” he said.
Wisconsin Corn Soy Expo sheds light on inflation, farm costs
Last month, Conley led a panel discussion at the annual Wisconsin Corn Soy Expo. The state event typically brings together more than 1,200 corn and soybean growers and pork producers.
It’s there he learned about people’s concerns regarding exports and tariffs, as well as interest in cutting back on costs due to declining revenues.
He said farmers will likely reduce the use of liquid fertilizer, which is used to promote soybean growth. But maintaining newer technologies on the farm is also proving challenging.
“We can better manage cover crops in our corn and soybean production systems, dealing with herbicide-resistant weeds,” Conley said.
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