Six weeks ago, Chinese buyers committed to purchase nearly $1.8 billion worth of U.S. soy, totaling 146 million bushels of U.S. soybeans. On Friday, October 14, Chinese buyers made an even larger commitment, signing contracts worth $2.1 billion of U.S. soy, or 5.1 million tons. With USDA’s October Crop Report estimating U.S. soybean production at an all-time high of 4.27 billion bushels for 2016, these latest Chinese purchasing agreements come at the right time. For soybeans, the U.S. crop is up 2% from last month and 9% higher than last year’s record harvest.

BIG BEAN BUYERS: A group of buyers from China came to Iowa on Oct. 14, 2016 and signed purchasing agreements totaling $2.1 billion worth of U.S. soy, or 5.1 million tons. That was on top of $1.8 billion worth of U.S. soy the Chinese bought in September.

The new commitments were signed at a ceremony held in Des Moines and attended by seven of the top Chinese buyers of U.S. soy, Chinese commerce officials, top Iowa state officials and representatives from the U.S. soy industry. The signing ceremony was hosted by the U.S. Soybean Export Council (USSEC) and the Iowa Soybean Association. Gov. Terry Branstad, Lt. Gov. Kim Reynolds and Iowa Secretary of Agriculture Bill Northey were in attendance.

Fostering a relationship between U.S. farmers, Chinese consumers
Iowa Gov. Terry Branstad talked about the trust, honor and respect that have helped foster the long relationship between Chinese President Xi Jinping and U.S. soybean farmers, sharing a photograph that shows the Chinese leader’s first visit to Iowa in 1985. “It’s pretty neat to have the president of China call you an ‘old friend,'” he said.

This year, U.S. soybean farmers are projected to export a record amount of soy and soy products, up from 62.88 million metric tons of soy and soy products, valued at $27.7 billion, in 2015. International buyers are turning to U.S. soy for a variety of reasons, including its quality, sustainability and reliability, to name a few.

China Chamber of Commerce for Import & Export of Foodstuffs, Native Produce and Animal By-products (CFNA) President Brian Zhenhu spoke about the trade collaboration between the U.S. and China. “This signing ceremony is just one manifestation of our cooperation,” he said.

Chinese officials and company reps traveled a long way to Iowa
These sentiments were echoed by the U.S. soy industry. “We were honored to be joined by a group of Chinese provincial officials and crush company representatives, who traveled 7,000 miles to meet with U.S. exporters to sign 16 purchasing agreements,” said Jim Miller, USSEC chair, American Soy Association (ASA) director and Nebraska soybean farmer. “These agreements are an example of the strong partnerships between the U.S. soy value chain and the international buyers who purchase our crop.”

The U.S. Soybean Export Council connects U.S. soybean farmers with opportunities to improve human nutrition, livestock production and aquaculture. This mission is accomplished with a science-based technical foundation and a global network of partnerships including soybean farmers, exporters, agribusiness and agricultural organizations, researchers and government agencies.

Farmers tout quality, sustainability during World Food Prize week
The Iowa soybean farmer’s commitment to be a reliable provider of high-quality protein grown sustainably also took center stage during World Food Prize activities last week in Des Moines. “When global leaders gather to talk about food, they come to Iowa,” said ISA President Rolland Schnell. “As the nation’s top producer of soybeans, we welcome them. We also look forward to reaffirming our commitment to growing soybeans our global customers want and need while increasing adoption of conservation practices that improve water quality and soil health here at home.”

Schnell said ISA is dedicated to advancing land stewardship and soil conservation programs statewide, recognizing that improved environmental performance is directly tied to increased farm productivity.

Iowa farmers host World Food Prize attendees to help tell story
Soybean farmers from Baxter, Newton, Carlisle and Pella helped tell this story Friday, October 14 when they hosted World Food Prize attendees for tours of their farms. Conversations included yield estimates and the evolution of technology, including better genetics, to help farmers grow crops more sustainably.

“Climate-smart agriculture,” a topic of great interest to soybean farmers like Ray Gaesser of Corning, was also part of the discussion. He says increasingly variable weather poses unprecedented risks to agriculture’s sustainability. Iowa soybean farmers, working in cooperation with cities, municipalities, landowners and conservation-focused organizations, are mitigating them by identifying practices that can have a positive impact. They include improved fertilizer management, reducing or eliminating tillage, planting cover crops and installing wetlands and saturated buffers.

“It’s about doing everything we can to adapt to more extreme weather events while growing abundant and reliable supplies of food and food ingredients,” Gaesser said. “Flooding and drought can lead to lost productivity and costly expenses, to the detriment of consumers and farmers. So it’s in our shared, best interest to continually improve our production and environmental systems.”

China buys nearly 60% of global soybean production per year
Sustainable production was also talked about when ISA leaders participated in the U.S.-China Ag Trade Cooperation Forum and contract signing ceremony. The signing reaffirms China’s preference for U.S.-grown soybeans. The country of 1.4 billion people purchases is nearly 60% of global soybean production, and Iowa is a trusted supplier.

“Global incomes are rising so more people are seeking to add protein to their diets,” says ISA market development director Grant Kimberley. “This is a positive trend for global relations and human health.

“It’s also the catalyst for jobs and household incomes in Iowa where nearly one of every five jobs is tied to food production,” Kimberley added. “Iowa farmers have shown time and time again the ability to deliver strong yields in conjunction with sustainable production. Iowa is helping lead the way in improving global food safety, sustainability and security, issues of great interest here at home and around the world.”

Iowa’s 38,000 soybean farmers have harvested an average of nearly 460 million bushels of soybeans annually since 2011. USDA pegs this year’s Iowa crop at 560 million bushels. The value of Iowa’s soybean crop routinely exceeds $5 billion. Iowa farmers account for nearly 14% of the nation’s annual soybean production and 4.6% of global soybean production.