By DOUG SCHMITZ Iowa Correspondent
WILLIAMSPORT, Ohio – Despite China recently committing to purchasing at least 25 million metric tons of U.S. soybeans, following the summit between President Trump and China President Xi Jinping, farmers are raising concerns over the country’s remaining 10 percent retaliatory tariff on U.S. soybeans. The agreement, covering 2026, 2027 and 2028, provides demand certainty for U.S. farmers during a period of ongoing trade tensions, according to the American Soybean Association (ASA). “As soybean farmers look to strengthen and expand markets, China’s annual commitment to purchase 25 million metric tons of U.S. soybeans provides critical stability, and we expect those commitments to be fully met,” said Scott Metzger, ASA president and Williamsport, Ohio, soybean farmer. The U.S. and China also made commitments to meet two more times before the new trade truce deadline of Jan. 10, 2027. Farmers continue to urge trade negotiators to pursue a trade deal that provides additional support for U.S. soybeans. However, Dave Walton, ASA vice president and Wilton, Iowa, soybean farmer, told Farm World China’s remaining 10 percent retaliatory tariff puts U.S. soybean farmers at a competitive disadvantage to South American soybeans that do not pay this tariff. “ASA continues to urge removal of that tariff so U.S. soybeans can compete for Chinese business on a level playing field,” he said, adding that purchase commitments provide important certainty, but the long-term goal is an environment where U.S. soybeans can compete on commercial terms, and farmers can count on that demand from year to year. The ASA noted Trump’s support of the Renewable Fuel Standard and other policies to benefit biomass-based diesel, which is a key domestic market for U.S. soybean farmers: “While pursuing a more beneficial trade deal with China, protecting and growing our domestic biofuels markets remains critical to protect soybean farmers’ bottom lines entering harvest season,” ASA said in a Sept. 28 media statement. Walton said having China’s purchase commitment through 2028 provides some much-needed certainty at a time when U.S. farmers continue to face high input costs, low commodity prices and pressure on the farm economy. “On my farm in Iowa, more than half of my soybeans are exported,” he said. “When I am making decisions about the next crop, knowing there is strong demand for U.S. soybeans matters. “U.S. soybean farmers produce a high-quality, reliable and sustainable product, and we want Chinese customers consistently choosing U.S. soybeans because we are competitive suppliers,” he added. “That kind of dependable, long-term commercial demand is what gives farmers confidence from one crop year to the next.”
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