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PNW grain merchandiser struggles as U.S.-China trade dispute upends soybean exports

This year’s trade dispute between the U.S. and China disrupted business for a regional grain merchandiser.

CEO Kurt Haarmann says Columbia Grain International processes, handles, and exports high-quality bulk grains, pulses, edible beans, oilseeds, and organics with a footprint stretching west from the Dakotas to Washington and Oregon.

“China accounts for well over 95 percent of the PNW soybean exports in a normal year, so to suddenly have that upended where we’re talking to growers about storing soybeans on farm or ourselves having to store their harvest, really challenges both our ability to execute for them and their ability to execute at the farm.”

He tells Brownfield the lack of soy exports to China has weakened farmer balance sheets in the region.

“You take a product like soybeans that is typically a cash off the combine crop, and you put it with basis levels that are 70, 80 cents, maybe even a dollar lower than a normal harvest basis and it makes it really challenging for them. Not just operationally, but financially.”

Haarmann says he’s encouraged by trade progress with China as it should provide financially relief and marketing opportunities for U.S. farmers going forward.