Soy, Sorghum Leaders Plea for Talks

KANSAS CITY, Mo. (DTN) -- Farmer frustrations over tariffs, their impact on sales and the lack of fruitful talks with China are starting to boil over with harvest underway -- and U.S. support for the Argentine government only heightened tensions.

The American Soybean Association (ASA) expressed its frustration over U.S. moves to support Argentina, which then led China to swoop in and buy Argentine soybeans. A leader for the National Sorghum Producers also highlighted how important the Chinese market is for that crop's value.

Midwest agricultural leaders will hear from Agriculture Secretary Brooke Rollins on Thursday in Kansas City, Mo.

SOYBEAN FRUSTRATIONS OVER ARGENTINE DEAL

Treasury Secretary Scott Bessent on Monday announced the U.S. government was in negotiations to extend a $20 billion currency swap to the Argentine government and potentially purchase the country's foreign bonds.

Almost immediately after, a reported 20 shiploads of Argentine soybeans -- 1.3 million metric tons -- were purchased by China after the Argentine government announced it would waive taxes on its soybean exports. That is worth about $477 million in sales in U.S. value at $10 a bushel.

The situation only exacerbates the lack of U.S. soybean sales to China, said Caleb Ragland, a Kentucky farmer and president of the American Soybean Association.

"U.S. soybean farmers have been clear for months: The administration needs to secure a trade deal with China," Ragland said. "China is the world's largest soybean customer and typically our top export market."

The U.S. has made zero sales to China in this new crop marketing year due to 20% retaliatory tariffs imposed by China, Ragland noted. This has allowed other exporters, Brazil and now Argentina, to capture more market at the direct expense of U.S. farmers.

"The frustration is overwhelming," Ragland said. "U.S. soybean prices are falling, harvest is underway, and farmers read headlines not about securing a trade agreement with China, but that the U.S. government is extending $20 billion in economic support to Argentina while that country drops its soybean export taxes to sell 20 shiploads of Argentine soybeans to China in just two days."

Bessent, when he was nominated to become Treasury secretary, said during his confirmation hearing that getting China to meet its trade commitments to U.S. farmers would be a top priority. So far, that hasn't worked out.

Ragland added, "U.S. farmers cannot wait and hope any longer. ASA is calling on President Trump and his negotiating team to prioritize securing an immediate deal on soybeans with China. The farm economy is suffering while our competitors supplant the United States in the biggest soybean import market in the world."

SORGHUM GROWERS FACE SIMILAR DILEMMA

Garrett Love, a Kansas farmer and vice chair of National Sorghum Producers, said in an interview that U.S. sorghum growers also face some of the steepest market challenges in years as exports to China have all but disappeared.

"Getting to where you might have a two in front of the number is pretty concerning as far as with the basis what it's doing," Love said, noting the squeeze is dragging down prices for other crops in the High Plains as well. "We want to produce, but we do need markets. We need places and homes for our grain."

For sorghum, the loss of China is critical. Roughly 60% to 70% of the crop is typically exported, and nearly 90% of that historically goes to China. "In 2025, exports to China are down 97%," Love said. "So, our total export value is down about 80%-81%. That's a very challenging situation that we're in."

Love said the sorghum sector has to ship about 200 million bushels (mb) in the next 150 days. "The only way you do that is with trade," he said. While India is seen as a potential growth market, high tariffs remain a barrier. "India charging 50%-60% for sorghum, as well as other commodities ... and us charging nothing for theirs, well, that's not really fair and free," he said.

China, meanwhile, remains the most important customer despite trade tensions. Love noted sorghum growers hosted Chinese buyers this past week in western Kansas. "They love our product, they want to use it, but obviously ... we need a deal, we need trade agreements, but also purchase commitments," he said.

Love added that some form of short-term support may be necessary to keep producers afloat. During the first Trump administration, farmers received $23 billion under the Market Facilitation Program.

"I think the aid, MFP-type payments are needed with the market situation we're looking at, but that would be a Band-Aid, not a long-term solution," he said. "Payments are kind of a bridge ... but the long-term trade deals commitments are definitely our biggest priority."

WATCHING GOVERNMENT RESPONSE

In recent weeks, the Agriculture secretary has alluded to the possibility of a similar program to the MFP payments, though she has offered few details. Rollins will speak to agricultural leaders gathered in Kansas City, Mo., on Thursday for an outlook forum.

Congress also could take action, though lawmakers and the Trump administration are facing a potential government shutdown next week. That could slow down federal support for farmers until the budget situation is resolved.

Rep. Mark Alford, R-Mo., spoke at the Ag Outlook Forum in Kansas City on Wednesday. The first Trump administration used the Commodity Credit Corp. (CCC) to create the MFP, but right now the CCC is drained until Congress replenishes the fund as part of annual appropriations.

"We don't have the money in the Commodity Credit Corporation that we did back then, so there's going to have to be some money put somewhere for the relief programs," Alford said. "And I think Secretary Rollins, she has signaled that that is going to happen in some form or fashion. It's just how do we get that money there, and how is it accessed as easily as possible to keep our producers healthy?"

Alford also said farmers in his district have expressed their financial concerns to him. He also pointed to the overall loss of farms nationally.

"They're concerned that this may be the last year for their own business -- the high input cost, part of it driven by Joe Biden's war on fossil fuels and input costs for fertilizers," Alford said, pointing to the low prices and expected large crops as well. "The prices are at almost rock bottom with high input costs. So, farmers are looking at it and wondering how much longer they can continue."

Looking at the possibility of another aid package, Alford said, "I think there's enough pressure building because the tariffs aren't settled. My hope was that they would have been settled, especially with China, before now."

Also see, "As Trade Freeze With China Continues, North Dakota Farmers Face Basis, Storage Pressures," https://www.dtnpf.com/…

Chris Clayton can be reached at Chris.Clayton@dtn.com.

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