Reuters: Trump trade policy could be opportunity for U.S. soybean processors

U.S. farmers are facing concerns over President-elect Donald Trump's proposed tariffs, which could negatively impact access to China, the country's top soybean buyer. However, these tariffs could potentially boost the U.S. crushing industry by encouraging companies to build more domestic crushing plants, as they seek to use more domestic supplies due to import restrictions and rising global prices of other vegetable oils. This could provide a positive outcome for farmers by increasing demand for U.S. soybean oil and helping to offset low crop prices. Despite these potential benefits, the tariffs could also lead to higher costs and delays in building new crushing facilities due to increased construction costs and the end of cheap financing, as seen in Midwestern cities where such projects have stalled. It remains uncertain whether Trump will change President Joe Biden's clean energy rules, which have supported the renewable diesel industry, or limit imports of used cooking oil, adding to the uncertainty in the agricultural sector.