US Announces New Support Package for Farmers Due to China’s Refusal to Purchase Soybeans
The US government is preparing a new assistance program for farmers following China’s decision to halt purchases of American soybeans.
This is reported by AgroReview
Official Announcement Expected Next Week
US Treasury Secretary Scott Bessent stated that the federal government will soon announce a support package for farmers affected by China’s refusal to import soybeans from the US. According to him, the official presentation of new measures to assist the agricultural sector will take place on Tuesday.
American farmers, most of whom supported President Donald Trump during the 2024 elections, are facing billion-dollar losses due to the trade tensions between Washington and Beijing. Chinese importers have not signed any contracts to purchase soybeans from the US autumn harvest this season, complicating the financial situation for American farmers.
“We will have their backs,” said US Treasury Secretary Scott Bessent in an interview with CNBC.
Prospects for US Agricultural Exports
Bessent reported that the issue of soybean supply will be one of the key topics at the upcoming meeting between President Trump and Chinese President Xi Jinping, scheduled to take place in four weeks. The negotiations are expected to strengthen trade relations between the two countries.
According to the Treasury Secretary, most recent trade agreements by the US included commitments to purchase American agricultural products. Despite this, no country has yet managed to fully compensate for the volumes of soybean imports previously supplied by China. The situation is further affected by a record soybean harvest, which is putting additional pressure on prices.
Bessent also mentioned that he discussed support measures for farmers with President Trump and Agriculture Secretary Brooke Rollins the day before. The federal government plans to work with the Farm Credit Bureau to provide farmers with the necessary resources for the upcoming planting season.
The Treasury Secretary expressed confidence that the upcoming in-person meeting between the US and Chinese leaders could serve as a catalyst for a significant breakthrough in trade negotiations and improve the situation for American farmers.