Bessent, a farmer of both soybeans and corn, shares his heartfelt fears over the trade war that is still hurting his soybean business. Bessent has personal farmland holdings between $5 million and $25 million peaking across North Dakota. Last Friday, he hosted Chinese trade negotiators to hash out significant trade issues. The result doesn’t look so hot as after that meeting, China hasn’t bought a single American soybean. His story is a perfect metaphor for what so many American farmers are going through as they endure a trade war of the Administration’s creation.
And out in Elgin, Minnesota, Jake Benike, a sixth-generation farmer, voices the same fears. At 36 years old, he’s farming with his father, Gary Benike, on their family-run, 1,700 acre farm. The Benike family has been raising soybeans for 60 years, and the pressure has never been greater. It’s a difficult choice that Minnesota farmer Jake Benike is grappling with as he plans for next year’s crops. He’s afraid they have permanently lost their market for soybeans.
Trade Negotiations and Their Effects
Bessent’s visit providing such a high level of representation during this trade mission and helping break ground on critical trade issues affecting American farmers. He called it the largest step ever taken to open the education system to the impact of globalization. He added, “When the announcement of the deal with China is officially announced, our soybean farmers will be very happy about this season and the next few years.”
Though he is hopeful, Bessent’s own story highlights the grim reality of today’s agriculture environment. During his brief tenure since becoming Treasury Secretary he has realized the sides’ enormous financial damage. As a result of market changes and trade disruptions, these losses can now total almost $100 million.
USDA Jake Benike of Ortonville, Minn., has had the weather on his side. This has allowed him to grow more bushels that feed other markets. He told production why he didn’t end up getting fully blasted. Now, as they’re making their decisions this time around for next year, he questions, “Did we just lose our market? This uncertainty continues to hang over farmers as they make critical planting decisions for next season.
The Legacy of Farming
The Benike family’s agricultural legacy runs deep, with Christian Benike being the seventh generation active in farming. This long-standing relationship to place and customary practice highlights both the emotional and economic investment in their farming livelihood. Jake Benike of the Conservation Fund underscored the impact of the new price by stating, “This new price is really awful. It really discourages even thinking about farming these beans.”
Gary Benike is the fifth generation of his farming family. His misgivings are especially acute when contemplating the possible collapse of their soybean market. As trade relations continue to shift, the family’s half-century of tested experience growing soybeans is being pushed into uncharted waters.
Looking Ahead
Caught up in these ambiguities, Bessent, like any other newly appointed Treasury Secretary, stays preoccupied with the onus of being a Treasury Secretary and managing his own financial obligations. He noted that only 4% of my mandated divestitures remain. A large portion of that is farmland, one of the most illiquid assets there is.
The result of ongoing negotiations between President Trump and Chinese President Xi Jinping may be critical for the future of American agriculture. Four years later, Bessent and the Benikes are still waiting for an answer. This is a consequential decision that will determine the future direction of soybean farming in America.