China’s Snub of U.S. Soybeans Is a Crisis for American Farmers
nytimes.com
On a windy September morning, Josh and Jordan Gackle huddled to discuss the looming crisis facing their North Dakota soybean farm.
For the first time in the history of their 76-year-old operation, their biggest customer — China — had stopped buying soybeans. Their 2,300-acre soybean farm is projected to lose $400,000 in 2025. Soybeans that would normally be harvested and exported to Asia are now set to pile up in large steel bins.
Since President Trump imposed tariffs on Chinese goods in February, Beijing has retaliated by halting all purchases of American soybeans.
That decision has had devastating repercussions for farmers in North Dakota, which exported more than 70 percent of its soybeans to China before Trump unveiled the new tariffs this year. Unless China agrees to restart its purchases as part of a trade deal, farmers that depend on the Chinese market will be facing steep losses that could fuel farm bankruptcies and farm foreclosures around the United States.
China’s reluctance to purchase American soybeans and other agricultural products is expected to be a central topic as top officials from the United States and China meet for another round of economic negotiations in Spain this week.
Those talks are being anchored by Treasury Secretary Scott Bessent, whom Mr. Trump has put in charge of negotiating and securing a favorable trade deal with China. A win would undoubtedly curry favor with Mr. Trump. But in a strange twist, it could also help Mr. Bessent financially.
The Treasury Secretary owns thousands of acres of North Dakota farmland, worth up to $25 million. The properties grow soybeans and corn in a state that exports most of its agricultural products to China. The investments have earned Mr. Bessent as much as $1 million in rental income annually, according to his financial disclosure filings.
But the fortunes of Mr. Bessent, a multimillionaire former hedge fund manager, are not nearly as exposed to China’s whims as are those of the family farmers struggling to figure out how to sell their soybeans and keep their finances from falling apart.
To farmers in North Dakota, the forces of high interest rates, high input costs and falling prices are reminiscent of the 1980s farm crisis, which hobbled U.S. agriculture for nearly a decade and hollowed out much of rural America.
“The stress level is much higher now than it was then,” Jordan Gackle, 44, said in an interview. “If we keep this going for very long, then we are going to see the kind of foreclosures that were happening.”
Standing before a field of soybeans a few weeks away from harvest, he added: “All of it is unnecessary. The U.S. was not forced into this by anybody.”
</snip> Read the rest here: nytimes.com |
