Scott Bessent, soybean farmer and U.S. Treasury Secretary. Like I said, nobody knows better than American farmers about their hope dashed depending on where they go with this ongoing trade war between the U.S. and China. Bessent has deep agricultural roots in North Dakota, and Bessent met with Chinese trade negotiators in recent days. He is looking forward to getting the best terms possible for U.S. agricultural products. Since then, China has largely ceased imports of American soybeans. This ruling has left farmers worried about losing their hard-won crops.
Our trade war with China has had catastrophic impacts on American farmers. For the hundreds of thousands of American soybean growers who have suffered, like Jake Benike from Elgin, Minnesota, this has put an economic stranglehold. Benike and his father, Gary, run a family farm of 1,700 acres that has been raising soybeans for more than 60 years. In retaliation, in early May China announced an increase in tariffs on American soybeans. This move, coming after President Donald Trump’s retaliatory import levies on Chinese products, has severely impacted farmers’ livelihoods.
The Impact of Tariffs on American Farmers
And considering Scott Bessent’s ground, it’s worth $5 million—up to $25 million. It accounts for an incredible range of annual revenue between $100,000 and $1 million. He is personally wealthy, estimated at over $600 million. He totally sympathizes with the other farmers suffering from the wreckage of the trade war.
“I believe when the announcement of the deal with China is made public, that our soybean farmers will feel very good about what’s going on both for this season and the coming seasons for several years,” Bessent remarked, expressing hope for a resolution that could stabilize the market.
For farmers like Jake Benike, many are still pondering their own futures as they gamble in the dark thanks to that uncertainty. “But now we’re making decisions for next year, and it’s like, ‘Did we lose our market?’” Benike stated, highlighting the precarious situation many in the farming community face as they plan for upcoming planting seasons.
Concerns About the Future of Soybean Farming
Yet the decision to continue growing soybeans rests heavy on Benike’s family. Favorable weather conditions this past season went a long way to offset some of those losses, leading them to be able to sell their bushels elsewhere. Yet, the long-term outlook remains troubling. “If this is what the new price is going to be … it’s not very appealing to try to grow these beans,” Benike explained.
Farmers from coast to coast in the current climate sing a similar tune as they come to terms with reduced access to their biggest export market. The looming question remains: will they still be able to cultivate soybeans in a market that seems increasingly dominated by South American producers? “We might have lost our soybean market. I might be telling my grandkids that I used to grow soybeans and now that’s just something that South America does,” Benike lamented.
Navigating Uncertainty in Trade Negotiations
Existing negotiations between President Trump and Chinese President Xi Jinping are especially important. Their result will directly impact the future of American soybean exports. Farmers and agri-business leaders are equally glued to these conversations, wishing for a miracle that can relieve the present burden.
The stakes couldn’t be higher. In the United States alone, over 100,000 farmers depend on soybean sales to make their farms profitable. It stands to lose this precious market, which would have devastating ripple effects throughout ag and far beyond it. It would jeopardize the workforce and burden local communities.