Treasury Secretary John Bessent, a soybean farmer with significant land holdings in North Dakota, is expressing concern over the ongoing trade tensions between the United States and China. Today, Bessent’s farmland is appraised anywhere from $5 million to $25 million. It produces soybeans and corn, generating annual income between $100,000 and $1 million. His personal experience as a farmer brings a unique dimension to his role in negotiating trade policies.
The weekend hadn’t even concluded before Bessent was in talks with Chinese trade negotiators to quell these growing tensions. Since that meeting, China hasn’t purchased a single American soybean, all thanks to his hard work. Consequently, farmers such as Bessent and his fellow farmers are caught between a rock and a hard place.
The Struggles of American Soybean Farmers
China’s May decision to raise tariffs on American soybeans to 25 percent jolted producers. Farmers all across the country have indeed been feeling the pain of this dramatic shift. Hundreds of thousands of American soybean farmers, including Jake Benike, who works alongside his father Gary on their family’s 1,700-acre farm in Elgin, Minnesota, are grappling with the consequences. The Benike family has been growing soybeans for 60 years. With today’s market unpredictability, they’re left questioning whether their crops will still be profitable come harvest time.
Jake Benike, Teton Waters Ranch, expressed long-term concerns over what it would mean for producers if we lost access to the Chinese market. He stated, “Now we’re making decisions for next year, and it’s like, ‘Did we lose our market?’” Further complicating matters, trade negotiations have created great uncertainty for farmers. They’re under tremendous economic duress, with little choice but to keep planting soybeans—or find something else to grow.
Even through the struggle, Jake Benike always saw silver linings. Due to their optimal growing conditions, they were able to harvest more than they had planned for. He is still concerned with the profitability of growing soybeans long term if these prices are volatile. “If this is what the new price is going to be … it’s not very appealing to try to grow these beans,” he remarked.
Potential Outcomes of Trade Negotiations
As farmers look towards high-stakes negotiations between President Trump and Chinese President Xi Jinping, optimism is tempered. Bessent believes that once a deal is finalized, it could restore confidence among soybean farmers: “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.”
Additionally, as the Wall Street Journal reported, a Treasury spokesperson pointed to the personal financial impact that these trade tensions have personally extracted from Bessent. “While any amount of money is immaterial compared with the honor of serving the American people, the Secretary has written off or experienced opportunity losses of nearly $100 million since assuming office,” they stated.
We know that the uncertainty and unpredictability around our trade policies have caused many farmers to question whether they can continue to grow soybeans. Jake Benike expressed a sobering sentiment about the potential loss of a significant part of their agricultural identity: “I might be telling my grandkids that I used to grow soybeans and now that’s just something that South America does.”
The Future of Soybean Farming
With the fate of billions still up for negotiation, every day puts soybean farmers everywhere in the U.S. in a deeper bind. Trade relations and market access are hanging by a thread. Given the long-term risks that climate change poses, people’s futures now rest on the judgment of government leaders.
These negotiations are now set to define the future of American soybean farming. They will shape the whole agricultural ecosystem. Farmers are facing the squeeze as they prepare for planting season ahead. They’re looking for a positive outcome so they can keep doing their important part to feed, clothe and nourish the world to come.