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Minnesota farmers relieved after Trump's soybean deal with China

As Minnesota farmers wrap up fall harvest, many are celebrating a soybean deal with China. 

President Trump's trade war with China had put pressure on farmers across the state, but over the past couple days, that's changed.

"In my area it was a fantastic season," said Ryan Mackenthun, who farms in McLeod County. "You couldn't ask for better harvest weather for soybeans."

For once, great fall weather was a certainty for Minnesota farmers. But they still harvested in an uncertain market.

"For the past couple years we haven't had that export market available," said Mackenthun.

When Mr. Trump was elected, Mackenthun knew that tariffs and a trade war with China were coming. And it forced him to take a new approach this year — planting more corn than soybeans.

"It was a pretty frantic fall for a lot of people because we did things that we normally didn't do," said Mackenthun, who is also vice president of the Minnesota Soybean Growers Association. "We export roughly half of the soybeans we grow here in America. And half of those exports go to China."

During the trade war, China pulled back on purchasing soybeans from the U.S. 

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But on Thursday, Mr Trump and Chinese President Xi Jinping reached an agreement. It amounts to China buying 12 million metric tons of soybeans this year, and at least 25 million metric tons over each of the next three years. That would ultimately return purchasing volume to the levels seen prior to the trade war.

"I'm very relieved. I know they met back in early September, and nothing came of that meeting of soybeans and soybeans lost 50 cents because nothing came of it. So, we were really hopeful that something came of this meeting last week and we are really grateful that a deal is done," said Mackenthun.

He said a deal like this benefits more than just soybean farmers. He believes it impacts anyone whose livelihood is connected to agriculture.

"The manufacturers, the equipment dealers, if John Deere farmers are profitable maybe John Deere won't lay off so many people. We will be able to support their market, and their market supports other markets," said Mackenthun.

Mackenthun said there's also hope for increased domestic use for biofuels, which he said would keep soybeans from being a trade war target in the future.

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