West of Mpls MN about 50 miles on Hwy 12 | This April article says Russia and Canada want to increase soybean production, and exports.
https://www.agricensus.com/Article/Russian-soybean-production-to-inc...
Russian soybean production to increase 8.2%: USDA
13 Apr 2018 | Andy Allan
Greater acreage and improved yields will see Russia produce 3.87 million mt of soybeans in the 2018/19 marketing year, according to the Moscow branch of the USDA, although greater demand will see imports flat.
The figures are up 8.2%, or 295,000 mt, on the previous year, with area increasing to 2.8 million hectares, up 7.5% year on year and a chunky 27% on the previous year.
Imports are expected to remain flat at 2.1 million mt. Paraguay, Brazil, Romania and Croatia were the main suppliers of beans to Russia.
Soybean exports are forecast up at 625,000 mt for 2017/18, reflecting a good pace of shipments to China, the USDA said, although these exports are limited by infrastructure.
"Expansion of soybean exports to China is constrained by infrastructure issues such as incompatible railway gauges, lack of road connections between the two countries and absence of grain sea terminals," the report said.
This article says China is reducing other taxes to lessen the impact of tariffs.
China reduces VAT on soybean as part of wider tax cut
29 Mar 2018 | Andy Allan
China will, from May 1, cut VAT rates to 10% from 11% on farm produce, the Chinese cabinet announced on Wednesday, a cut that will likely save crushers of imported soybeans $4-5/mt.
In addition to an 11% VAT charge, China levies a 3% tariff on imported soybeans.
The cut is part of a broader tax reduction package amounting to 400 billion yuan ($64 billion) and is meant to fuel economic growth.
"This round of tax cuts will apply to all manufacturing companies. All businesses registered in China, either joint ventures or completely foreign owned companies, will be treated equally," Premier Li said.
The latest VAT Reform takes total tax cuts in China since 2013 to 2.1 trillion yuan.
Russia is one of a number of countries seeking to ramp up soybean production, with Canada forecasting production to double over the next nine years.
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Sassy's question.
