US farmers welcome China’s promise to buy their soybeans, but the deal doesn’t solve everything

American farmers welcomed ChinaThey have promised to buy some of their soybeans, but cautioned that it will not solve all their problems as they grapple with rising prices of fertilizers, tractors, repair parts and seeds.

Sugar A promise to buy at least 25 million metric tons of soybeans annually for the next three years would bring their purchases back to the same level as they were before the president. donald trump Started its trade war with China in the spring. But the 12 million metric tons China plans to buy between now and January is only about half the normal annual amount.

“It’s great. I’m very grateful,” said iowa Farmer Rob Ewalt, who is a director of the United Soybean Board. “I don’t want to look like an ungrateful farmer, but this doesn’t fix everything in the short term.”

Agriculture Secretary Brooke Rollins said China also has agreed to lift all of its retaliatory tariffs on U.S. ag products, which should open the door to sales of other crops and beef. Additionally, China promised to resume purchases of U.S. sorghum, another crop largely used for animal feed that depends on that market. More than half of the sorghum and soybean crops are exported each year, most of which goes to China.

These promises from China will make it easier for farmers to get the loans they need for next year, but Ewalt said, “I hope the administration doesn’t think this is going to solve everything in the next six to eight months or ten months.”

Trump had promised a significant aid package this autumn to help farmers survive a trade war with China, but it has been put on hold due to the ongoing government shutdown. Rollins said the aid package is still a work in progress, but he promised the administration is ready to “step into the gap” and address any harm farmers may face due to the trade war.

“We’ll see what the market does and we’ll be prepared to continue to move forward if we feel that’s necessary,” Rollins said.

China is the largest buyer of soybean in the world. It had been buying about a quarter of the U.S. crop consistently in recent years. China bought more than $12.5 billion worth of the roughly $24.5 billion worth of U.S. soybeans exported last year.

China stopped buying American soybeans this year after Trump imposed tariffs. Yet it has been steadily shifting more of its purchases to Brazil and other South American countries since Trump’s trade war with China early in his first term.

World Bank data shows Brazilian beans accounted for more than 70% of China’s imports last year, while the US share fell to 21%. Argentina and other South American countries are also selling more goods to China, which has diversified to boost food security.

Farmer Caleb Ragland, who chairs the American Soybean Association trade group, said the agreement lays the foundation for China to restore its traditional purchases of 25 million to 30 million metric tons of U.S. soybeans.

“This is a meaningful step toward re-establishing a stable, long-term trading relationship that delivers results for farming families and future generations,” said Ragland, who farms nearby. magnoliaKentucky.

Indiana farmer Brent Bible said the deal with China sounds good — as long as they actually keep their promises, unlike the trade deal China signed with the United States in 2020 after Trump’s initial trade war. The COVID-19 pandemic disrupted trade between the two countries as soon as the agreement came into force. In 2022, US agricultural exports to China reached a record, but then fell.

“If we see actionable purchasing and China follows suit, that’s great,” Bible said.