Farm groups 'encouraged' by trade deal with China for U.S. soybeans

Iowa farm groups and leadership celebrated President Donald Trump’s trade deal with China Thursday, which included substantial purchases of soybeans for 2025 and subsequent years. 

   Farm groups said the trade deal was “encouraging” but also noted the need to continue looking for export markets and developing domestic soybean markets. 

   Trump and U.S. Secretary of Agriculture Brooke Rollins announced Thursday China would purchase at least 12 million metric tons of U.S. soybeans this year, followed by at least 25 million metric tons annually in 2026, 2027 and 2028. 

   The announcement followed Trump’s meeting with Chinese leader Xi Jinping, where the leaders agreed to remove certain retaliatory tariffs and Xi agreed to continue exports of rare-earth materials and possibly purchase energy from the U.S. 

   Aside from a small reported shipment of soybeans purchased just ahead of the leaders’ talk, China had not purchased any soybeans from the current U.S. crop, which left farmers wondering if they had lost their largest export market. 

   Iowa Soybean Association called the announcement “encouraging news” in a news release Thursday. ISA said soybean associations were “encouraged” that the trade commitments were framed as minimums and looked forward to “continued growth in soybean purchases beyond these levels.” 

   ISA President Tom Adam said the announcement addressed many of the concerns farmers had after “months of stalled purchases and uncertainty.” 

   “This is great news for American agriculture and for soybean farmers who have been eager to reestablish a stable and long-term relationship that positions us for success moving forward,” Adam said in the release. “We are very grateful to President Trump for making soybeans a priority in negotiations with China.”

   According to the association, China has historically purchased between 28 and 36 million metric tons of soybeans, annually over the last 10 years, excluding the past two years when the country bought fewer U.S. beans. 

   The association also called for the administration to continue developing other foreign export relationships and to finalize renewable fuel standards to help grow the domestic soybean market.

   Rollins said in a social media post the deal was “HUGE” considering China has played “hard ball” with the U.S. over the past four years. 

   “China’s additional commitment to purchase minimums for the next three years while President Trump is in the White House to actually hold them accountable is good for all of us!” Rollins wrote. 

   Iowa Secretary of Agriculture Mike Naig said the deal with China will make a “meaningful impact” on farmers who are “feeling the pain of a tough farm economy.”

   “It’s important that we continue to play offense on trade by opening and expanding new markets while also driving domestic use of Iowa products, especially homegrown biofuels,” Naig said in a statement. 

   Gov. Kim Reynolds and U.S. Sen. Joni Ernst also celebrated the news Thursday on their social media accounts. 

   Iowa Farm Bureau Federation President Brent Johnson similarly said the deal was a positive development for farmers. 

   “The announcement of China’s return to the marketplace is welcomed news and should provide some price support to struggling U.S. soybean markets,” Johnson said in a statement. “With farmers facing rising costs to grow a crop amid depressed markets, we applaud the administration’s efforts to secure trade deals and opportunities for agriculture.”