ASA praises China soybean deal but details still emerging

The American Soybean Association on Thursday praised the Trump administration’s announcement that China will buy 12 million metric tons of soybeans this marketing year and buy a minimum of 12 million metric tons per year through 2028, but noted that “details are still emerging and to be confirmed.”

President Trump noted the expected Chinese purchases on social media and Treasury Secretary Scott Bessent announced some details on “Mornings with Maria” on Fox Business News. Bessent said the initial purchase would be between now and January.

Trump said China will also buy “sorghum and other farm products.”  

“Today’s announcement is great news for American agriculture, and soybean farmers are extremely grateful to President Trump for making soybeans a priority in negotiations with China,” said Caleb Ragland, ASA president and soybean farmer from Magnolia, Ky.

“This is a meaningful step forward to reestablishing a stable, long-term trading relationship that delivers results for farm families and future generations.”

But ASA also noted that the promised purchases are lower than China’s purchases in the past.

ASA said it is “encouraged that these commitments are framed as minimums and looks forward to continued growth in soybean purchases beyond these levels.”

“China has historically purchased 25 to 30 million metric tons of U.S. soybeans in recent years, and today’s commitments lay a strong foundation to return to those traditional volumes over the coming marketing years.”

American Farm Bureau Federation President Zippy Duvall said, “Farm Bureau is encouraged by China’s commitment to import soybean and sorghum from the United States.”

“Trade disputes dealt a blow to farmers who have already been hit hard by high expenses and historically low commodity prices.

“Today’s three-year agreement comes within days of announced trade deals with Malaysia and Cambodia, along with frameworks with Thailand and Vietnam. Expanding markets and restoring purchases by China will provide some certainty for farmers who are struggling just to hold on.

“We appreciate the administration for listening to the needs of America’s farmers. As additional details are made known, we look forward to evaluating how these agreements will benefit the U.S. farm economy,” Duvall said.

Sen. Roger Marshall, R-Kan., said on “The Brian Kilmeade Show” on Fox, “we’re just doing back flips across the state of Kansas.”

“You know what this means is $15 billion a year for soybean farmers, you know, probably $2 billion a year for sorghum farmers across the country. Those are big numbers back home, OK, for the size of our GDP, so, $15 billion a year that China is going to be buying of soybeans, 2 billion of sorghum as well. So, big, big news. We’re just doing back flips back home.”

“Even yesterday, China already ordered several big cargo ships of soybeans, I think, just to kind of pay tribute to President Trump.”

“But it is so key. You can’t just listen to what they say. You got to watch what they do. But then, that’s what we saw before Trump 45 negotiated some good trade deals. China started buying, but then Joe Biden’s elected, and they quit buying, right? So, it’ll take you know, is it real important to the next president? Will they enforce these trade agreements? We know Trump will,” Marshall said.

But analysts expressed concerns about the deal between Trump and Chinese President Xi.