WASHINGTON, D.C. — Ohio farmers said they were optimistic about a new trade deal that will see China again purchase U.S. soybeans, following months of trade turmoil that left soybean farmers uncertain if they would be able to sell this year’s crop.
What You Need To Know
- The deal follows months of trade turmoil that left soybean farmers uncertain if they would be able to sell this year’s crop
- Ohio soybean farmers are expressing cautious optimism that the deal will stabilize global trade
- The amount of soybeans China agreed to purchase this year is about half of what it normally would buy
President Donald Trump has been touting the trade deal he struck with Chinese President Xi Jinping during his nearly weeklong trip to Asia. According to Trade Secretary Scott Bessent, China will start purchasing 12 million metric tons of U.S. soybeans between now and January, then 25 million metric tons annually through 2028.
“We’re in agreement on so many elements. Large amounts, tremendous amounts of the soybeans and other farm products are going to be purchased immediately,” Trump told reporters on Air Force One.
Though the deal has not been finalized, Ohio Soybean Association deputy executive director Brandon Kern said soybean farmers were expressing cautious optimism that the deal will stabilize the global marketplace.
“I think given the uncertainty leading up to this point, and no purchases from China and the negative impact that that was having on the marketplace, yes, I think this is encouraging and it’s a step forward,” said Kern.
Still, with this year’s soybean harvest already in the books, China has agreed to buy only about half of what it normally would in a year.
Combined with higher costs and lower crop prices, the U.S. Department of Agriculture estimates soybean farmers will face a net operating loss of about $100 per acre this year.
“While [the trade deal] is encouraging, and this helps us get us back to a closer marketplace for our sales and our exports, farmers are still facing a challenge,” Kern said.
The Ohio Soybean Association is still calling on the Trump administration to release the roughly $12 billion in aid he pledged for farmers hurt by tariffs. Sen. John Hoeven, R-N.D., chair of the Senate Agriculture Appropriations Subcommittee, has said dispersal of the aid is being held up by the government shutdown.
Another challenge may be ensuring China upholds its end of the bargain. Last week, the U.S. Trade Representative opened an investigation into China falling short of its commitments to purchase U.S. goods—including soybeans—in a trade deal during Trump’s first term. Some lawmakers are calling on the Trump administration to add an enforcement mechanism to the final soybean deal.
“China has never proven trustworthy in these deals in the past, but President Trump, I think in his team, they know that. They know that enforcement is a big deal. We depend on that,” said Sen. Jon Husted, R-Ohio. “A deal’s no good if people don’t live up to their end of the deal.”
For now, however, there is no way to verify if China is buying the pledged amount of U.S. soybeans. Normal information on export sales is not available because of the government shutdown.
