Why It Matters
South Dakota’s soybean industry is navigating a critical period of market realignment, as farmers and state officials work to reduce dependence on China and build lasting trade relationships in Asia. The state’s agricultural economy depends heavily on soybean exports, making market diversification a top priority for South Dakota growers and policymakers alike.
With China accounting for roughly 30% of South Dakota’s soybean purchases in recent years — and that share proving volatile amid ongoing trade tensions — officials are now actively courting buyers in Japan and South Korea to stabilize long-term demand.
What Happened
A high-level South Dakota trade delegation traveled to Japan and South Korea earlier this month to strengthen agricultural trade relationships and lay the groundwork for expanded soybean and soy-fed pork exports.
The delegation included Lt. Gov. Tony Venhuizen, South Dakota Trade President and CEO Jesse Fonkert, Governor’s Office of Economic Development Commissioner Bill Even, and state Agriculture and Natural Resources Secretary Hunter Roberts. Jerry Schmitz, executive director of the South Dakota Soybean Research and Promotion Council, also joined the group.
Schmitz described the mission’s primary purpose as relationship-building rather than immediate contract negotiations. “Really, we’re laying the pathway for additional sales in the future,” he said. The delegation met with Chinese hog feed suppliers, grocery representatives, and other buyers based in Japan and South Korea.
Officials emphasized that neither Japan nor South Korea is a new destination for South Dakota soybeans or soy-fed pork. The trip was aimed at deepening existing ties and expanding the volume and variety of exports over time, with a particular focus on value-added products such as pork raised on South Dakota soybean feed.
By the Numbers
- 30% — The approximate share of South Dakota’s soybean crop previously purchased by China before trade disruptions took hold.
- 12 million metric tons — The minimum volume of U.S. soybeans China agreed to purchase during the final two months of 2025 as part of a trade suspension agreement.
- 25 million metric tons per year — China’s agreed annual minimum purchase of U.S. soybeans from 2026 through 2028 under the same agreement.
- $12 billion — The farm aid package rolled out by the Trump administration to help offset agricultural losses resulting from trade disruptions.
- 2 countries visited — Japan and South Korea were the destinations of the March 2026 trade mission.
Zoom Out
South Dakota’s trade mission reflects a broader national effort among soybean-producing states to diversify export markets following years of turbulence in U.S.-China trade relations. The dispute between Washington and Beijing has repeatedly disrupted agricultural exports, with retaliatory Chinese tariffs hitting soybean farmers especially hard across the Midwest and Great Plains.
China’s gradual shift toward cheaper Brazilian soybeans has added another layer of uncertainty. Brazil has expanded its soybean production significantly over the past decade and now competes directly with U.S. growers for Chinese contracts, a trend that shows no signs of reversing regardless of tariff conditions.
States including Iowa, Illinois, and Minnesota have pursued similar strategies to develop alternative markets in Southeast Asia, the European Union, and elsewhere. Japan and South Korea are considered among the most stable and high-value destinations for U.S. agricultural products, given their longstanding trade relationships with the United States and strong demand for premium food products.
The Trump administration’s $12 billion farm aid package acknowledged the damage that trade policy disruptions caused to American farmers, but agricultural groups have consistently called for structural market changes rather than short-term financial relief.
What’s Next
South Dakota officials expect the relationships built during the March trade mission to translate into increased purchasing agreements over the coming months and years. Schmitz indicated that the long-term goal extends beyond raw soybean exports to include a growing market for pork and other value-added products tied to soybean production.
The state’s soybean industry will continue monitoring China’s purchasing behavior under the 2026–2028 minimum purchase agreement while simultaneously working to ensure that Japan and South Korea become more significant and reliable buyers.
Further trade missions and follow-up meetings with international buyers are expected as South Dakota works to position its agricultural sector on more stable footing heading into the next growing season.