With China halting U.S. soybean imports, Midwest farmers warn of bankruptcies and collapsing rural economies.
In the quiet fields of Kennard, Nebraska, the impact of global politics is being felt as strongly as in Washington or Beijing. American soybean farmers, long reliant on China as their largest export market, are facing a looming crisis as trade tensions between the U.S. and China escalate.
Scott Thomsen, a fourth-generation farmer, says this year has been unlike any other. “China has not bought a single export cargo of beans so far this year, which is not very typical,” he told ABC News while preparing for his soybean harvest. “When China quits buying, our prices go down.”
The stakes are enormous. For seven years prior to the 2018 trade war during the first Trump administration, roughly 60% of all U.S. soybean exports went to China, according to the American Soybean Association. Now, China has shifted its purchasing power to South America, particularly Brazil, leaving U.S. farmers struggling with unsold crops and rising input costs such as fertilizer.
“This is a massive shock to our markets,” said Cory Walters, professor of agricultural economics at the University of Nebraska. Farmers across the Midwest warn of potential bankruptcies, foreclosures, and economic collapse in rural communities if the situation persists. “Agriculture is our foundation here in Nebraska and many states in the Midwest,” said Don Schuller, a corn and soybean farmer. “If agriculture is failing here, everything is going to fail.”
Many farmers say they feel like bargaining chips in a high-stakes political standoff. “We’re in the middle of the worst economic downturn that I’ve seen in my 50 years,” said John Hansen, president of the Nebraska Farmers Union. Concerns are mounting that local storage facilities and crushing plants may soon stop accepting soybeans, further driving down prices as supplies outstrip demand.
President Donald Trump has pledged support for American farmers, pointing to tariff revenues as a possible lifeline. “I’m never going to do anything to hurt our farmers,” he said, noting that discussions are underway about a farmer aid package. Still, concrete measures have yet to be announced by the Department of Agriculture, leaving many in limbo.
Chinese officials, meanwhile, have made clear their stance: for soybean trade to resume, the U.S. must remove tariffs. “The United States should take positive action to cancel the relevant unreasonable tariffs to create conditions for expanding bilateral trade,” said commerce ministry spokesperson He Yadong.
Despite the uncertainty, some farmers remain supportive of Trump’s approach, viewing the current struggle as a necessary step toward a stronger economy. “I think this is some short-term pain for a long-term gain,” Thomsen said, reflecting the resilience—and frustration—of many across America’s heartland.
