Trump plans $10 billion aid package for U.S. soybean farmers — CBS

Trump plans $10 billion aid package for U.S. soybean farmers — CBS

President Donald Trump has announced plans to provide a $10 billion aid package to U.S. soybean farmers, aiming to mitigate the impact of China's ongoing boycott of American beans. This move comes as the trade war between the U.S. and China continues, with China having halted purchases of U.S. soybeans since May. The aid package is expected to be announced as early as Tuesday, according to the Associated Press .

The soybean industry is a significant component of U.S. agriculture, with soybeans accounting for about 14% of all farm goods sent overseas. China has traditionally been the largest foreign buyer of American soybeans, purchasing 25% of all U.S. soybeans in recent years. The halt in purchases has left U.S. farmers, who grew $60.7 billion worth of soybeans in the 2022-2023 marketing year, facing substantial financial strain .

The aid package is expected to be funded by money generated from tariffs imposed on other countries. This move is part of the Trump administration's efforts to support American farmers, who have been negatively impacted by the trade war. The administration has previously provided over $22 billion in aid to farmers in 2019 and nearly $46 billion in 2020, though the latter also included aid related to the COVID-19 pandemic .

Caleb Ragland, president of the American Soybean Association, welcomed the acknowledgment of the difficulties faced by farmers. He emphasized the need for swift action to prevent many farmers from going out of business. Ragland stated that time is running out for the two governments to reach a deal, as China has already ordered soybeans from countries such as Brazil and Argentina for deliveries through December .

The trade war has not only affected U.S. farmers but also the broader economy. The retaliatory tariffs imposed by China have made U.S. soybeans uncompetitive in price, leading to a decrease in sales. Observers suggest that China could ease tariffs on U.S. farm goods if the White House walks back on fentanyl-related tariffs, which has yet to happen .

Farmers like Bill Waters, a soybean farmer in Kansas and Missouri, have been forced to get creative to pay their bills. He has been selling off old equipment and is concerned about the sustainability of his operation. Dennis Hupe, Director of Field Services with the Kansas Soybean Association, highlighted the rising costs of farm equipment and inputs, which have skyrocketed while soybean prices have decreased .

While the aid package is seen as a temporary measure to support farmers, it is not considered a long-term solution. Farmers prefer to sell their crops on the market rather than rely on government assistance. The Kansas Soybean Association emphasizes the need for a trade deal to restore free enterprise and free markets .

The Trump administration's planned aid package is a significant step to support U.S. soybean farmers during this challenging time. However, the ultimate resolution will depend on the ability of the U.S. and China to reach a trade deal that addresses the underlying issues.