Magnolia, Ky. (AP) – The lush soybean plants have reached Caleb Ragland’s thighs and are ripe, but Kentucky farmers are deeply concerned. He doesn’t know where he and others like him sell their crops as China stopped buying.
Beijing, which has traditionally snapped at least a quarter of all soybeans grown in the US, is effectively boycotting them in retaliation High tariffs President Donald Trump imposed Chinese goods and strengthened his hands negotiation Regarding the new overall trade agreement.
American soybean farmers have surprised the long-term viability of their business, built in part by China’s once-unusual appetite for this year’s crops, as well as our beans.
“This is a five-arm fire for our industry,” said Ragland, who heads the American Soybean Association’s trade group.
He still enjoys strong support in rural America, but even circumstances may be enough to test farmers’ loyalty to Trump. If the deal doesn’t reach soon, they hope that the government will come with the aid it did during Trump’s first term, but they see it as a temporary solution only. Trump said Thursday that he was considering an aid package.
We and Chinese officials are detained Four rounds of trade talk There is another possibility between May and September in the coming weeks. No progress in soybeans has been reported.
“We’re looking forward to seeing you get a lot of money,” said Jim Sutter, CEO of the US Soy Export Council.
Political pressure is rising
China after Trump imposes tariffs on Chinese goods We handled it with our own customs dutiescurrently up to 34% of soybeans in the US total. It will make soybeans cheaper in other countries.
China’s retaliatory tariffs were also hit by sorghum, corn and cotton growers. Geoduck Diver It’s been affected. However, soybeans stand out due to the importance of crop characteristics to US agricultural exports. Soybeans are the top food exports in the United States, accounting for around 14% of all agricultural products sent overseas.
And China was by far the largest foreign buyer. Last year, the US exported almost $24.5 billion worth of soybeans, while China accounted for more than $12.5 billion. This compares to $2.45 billion by the second largest buyer, the European Union. This year, China has not purchased beans since May.
When US farmers get hurt, the Trump administration is putting pressure on them to reach deals with China. As consultations drag on, Trump appears ready to help.
“We take a portion of the tariff money — a relatively small amount, but a lot for farmers — and we’re trying to help farmers a little during this transition period,” Trump said.
The only way most farmers survived Trump’s trade war in his first term was tens of millions of dollars to pay the government. But that’s not what most farmers want.
What farmers expect from Trump
“American farmers, especially myself, don’t want to pay for assistance,” said Brian Warpop, 52, a fourth-generation farmer from Warren, Indiana. “We want to work. We work the land, harvest the land, harvest the crops from the land. And the worst thing we wanted is handouts.”
Farmers are looking for Trump in search of a long-term solution.
“The farmers were overwhelmingly on the corner of President Trump,” said Ragland, president of the Soybean Association. “And I think the message that our soybean farmers want to provide as a whole is, “President Trump, we had your back. We need you to have ours now.” ”
He said that while farmers appreciate their willingness to provide short-term relief, what they ultimately need is a strong and reliable market. “Our priorities aim to ensure that the US has lasting trade agreements so that farmers can sell their crops and build a sustainable future with their long-term clients.
Ragland, 39, hopes that his three sons will become the 10th generation to 4,500 acres in Magnolia, Kentucky. Unless something changes soon, he worries that thousands of farmers may not survive.
This year, many farmers wanted to break even if the prices of crops were weak, even if only increased costs. Trump’s tariffs, which helped make crops less competitive around the world, have lowered prices even further. Steel and fertilizer tariffs sent more costs.
Darrin Johnson, president of the Minnesota Soy Growers Association, said he still has faith in the Trump administration to reach a good trade deal with China.
“I think it’s time for patience to wear thinly,” said Johnson, a fourth-generation farmer. “I’ve been told 90 transactions, 90 transactions in 90 days, so no one thinks we’d think it would take so long.”
China’s negotiation strategy
The US soy industry grew in response to China’s demand that began in the 1990s, when China began to rapidly rise in the economy and relied on foreign producers to feed its people. Protein-rich soybeans are an important part of your diet.
China relies on household crops of steamed beans and tofu, but it requires much more soybeans for petroleum extraction and animal feed. In 2024, China produced 20 million tons of soybeans, importing more than 105 million tons of tons.
American farmers rely on China as their biggest client, which “gives China a point of leverage,” Sutter said. By refraining from purchasing our soybeans, China is expected to try to leverage its purchasing power in trade talks.
“I think that’s the strategy,” said Sutter of the US Soy Export Council. “I think that’s why China is targeting soybeans and other agricultural products because they have strong lobbies and know that farmers are important to the US government.”
Liu Pengyu, a spokesman for the Chinese Embassy in Washington, did not answer any specific questions about the purchase of soybeans, but urged the US to work with Beijing.
“The essence of economic and trade cooperation between China and the US is mutual benefit and victory,” Li said.
When Trump launched his first trade war in 2018, China turned to Brazil. Last year, Brazilian beans accounted for more than 70% of China’s imports, with the US share falling to 21%, World Bank data shows. Argentina and other South American countries are also selling further to China, diversifying to boost food security.
What do American farmers do accordingly?
He also said that US farmers are expanding their customer base and have recently traveled to Japan and Indonesia in search of new markets. Taiwan has pledged to buy $10 billion worth of soybeans, corn, wheat and beef over the next four years.
“There is a strong diversification effort underway,” Sutter said. However, “China is so big, it’s difficult to replace it overnight.”
Farmers also work at home to promote consumption. The growth in biodiesel production depends on some of the soybeans that were once exported. Others are crushed to produce soybean oil and soybean diets. The United Soybean Committee is investing in research into the benefits of using soybeans to feed dairy cows and pigs.
However, Iowa farmer Rob Ewalt, director of the Soybean Committee, knows that such domestic use is slowly growing.
“We can’t replace China in one go,” Ewalt said. “It won’t happen. We need to be realistic on that.”
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Tan reported funk from Washington and Omaha, Nebraska. Dylan Rovan, an Associated Press journalist in Magnolia, Kentucky, is Rummy of Warren, Indiana, and Steve Karnowski of Minneapolis contributed to the report.
