President Donald Trump is preparing a substantial aid package for U.S. soybean farmers as they face the fallout from China’s continued boycott of American beans, even while negotiations for a trade deal with Beijing continue. Treasury Secretary Scott Bessent told CNBC on Thursday that details of the support would be announced as soon as Tuesday, highlighting “substantial support for our farmers, especially the soybean farmers.”
The U.S. soybean sector has been hard-hit since China, the country’s largest soybean buyer, halted purchases in response to Trump’s tariffs. China last bought American soybeans in May and has yet to purchase any from this year’s harvest, which began in September. Soybeans represent the largest U.S. agricultural export, accounting for roughly 14% of total farm goods sold abroad, with China buying about 25% of these in recent years.
Trump emphasized the political nature of China’s boycott in a Truth Social post, promising to redirect a portion of tariff revenues to support American farmers. He also confirmed plans to meet Chinese President Xi Jinping at the Asia Pacific Economic Cooperation summit in South Korea, with soybeans slated as a major discussion topic.
Farmers are concerned about timing. Caleb Ragland, president of the American Soybean Association, warned that if a deal isn’t reached soon, China’s purchases from Brazil and Argentina could bypass U.S. beans entirely. “If they get another couple months, they’re into new crop soybeans in Brazil and Argentina. And they’re going to bypass us altogether if we’re not careful,” Ragland said.
Despite the ongoing challenges, analysts and observers say a soybean deal remains feasible. Retaliatory tariffs on U.S. soybeans have made American beans less competitive, but easing these tariffs could pave the way for renewed trade. Gabriel Wildau, managing director at Teneo, described a soybean deal as “the lowest-hanging fruit” for both governments, noting that China still needs soybeans and the U.S. has them available.
Farmers express a clear preference for trade over government aid. Robb Ewoldt from Iowa stressed that farmers would rather earn revenue through the market than rely on handouts. Meanwhile, Ryan Mackenthun, a fifth-generation Minnesota farmer, described measures he is taking to stretch resources and maintain yields despite uncertainty in the export market.
With China already sourcing nearly two million tons of soybeans from Argentina under a recent tax incentive, U.S. producers are under pressure to secure a deal soon to salvage sales from this year’s harvest. The coming weeks will be critical as Trump and Xi meet, and as American farmers weigh the need for government aid against the hope of restoring their largest overseas market.
