Omaha, Nebraska — Omaha, Nebraska (AFP) – American farmers Welcome China’s promise to buy some soybeans, but they warned that this would not solve all their problems, as they continue to deal with high prices for fertilisers, tractors, spare parts and seeds.
The Chinese promise to buy at least 25 million metric tons of soybeans annually over the next three years will return their purchases to what they were before President Donald Trump. He launched his trade war With China in the spring. But the 12 million metric tons that China plans to buy between now and January represents only half the usual annual volume.
“This is a very good thing. I’m very grateful,” said Iowa farmer Rob Ewoldt, a director with the United Soybean Board. “I don’t want to sound like an ungrateful farmer, but it doesn’t cure everything in the short term.”
China has also agreed to remove all retaliatory tariffs on U.S. agricultural products, which would open the door to sales of other crops, Agriculture Secretary Brock Rollins said. meat. In addition, China has promised to resume purchases of U.S. sorghum, another crop largely used for animal feed that relies on that market. More than half of the sorghum and soybean crops are exported each year, most of which go to China.
Getting those promises from China would make it easier for farmers to get the loans they need before next year, but Ewoldt said “I hope the administration doesn’t think this will solve everything in the next six, eight, 10 months.”
Trump had Promised to provide farmers A large aid package this fall to help them survive the trade war with China, but has been put on hold due to the ongoing government shutdown. Rollins said the aid package was still being worked out, but she promised the administration was ready to “step into that gap” and address any kind of damage the trade war has caused to farmers.
“We’ll see what the market does and we’ll be prepared to continue to intervene if we actually believe it’s necessary,” Rollins said.
China is the world’s largest buyer of soybeans. It has been consistently buying up about a quarter of the U.S. crop in recent years. China purchased more than $12.5 billion worth of the nearly $24.5 billion worth of U.S. soybeans exported last year.
China stopped buying US soybeans this year after Trump imposed tariffs. However, it has been steadily shifting more of its purchases to Brazil and other South American countries since Trump’s initial trade war with China in his first term.
Last year, Brazilian beans accounted for more than 70% of China’s imports, while the United States’ share fell to 21%, World Bank data show. Argentina and other South American countries are also selling more to China, which has diversified its products to boost food security.
Farmer Caleb Ragland, president of the American Soybean Association trade group, said the agreement lays the groundwork for restoring China’s traditional purchases of 25 million to 30 million metric tons of U.S. soybeans.
“This is a meaningful step forward toward re-establishing a stable, long-term business relationship that delivers results for farmer families and future generations,” said Ragland, who farms near Magnolia, Kentucky.
Brent Bible, an Indiana farmer, said this deal with China sounds good — as long as they actually do what they promised, unlike what happened with China. Trade agreement China signed with the US in 2020 after Trump’s initial trade war. The COVID-19 pandemic disrupted trade between the two countries once the agreement entered into force. In 2022, US agricultural exports to China hit a record high, but then declined.
“If we see actionable and follow-on purchases by China, that’s great,” Bible said.