Summary
- Treasury Secretary Scott Bessent announced support for farmers.
- Support due to China's halt on soybean purchases.
- Detailed announcement expected Tuesday from the federal government.
American farmers overwhelmingly voted for President Donald Trump in the 2024 presidential election, Bessent said.
"We've got their backs,"
he added.
The trade conflict between Washington and Beijing has prevented Chinese importers from purchasing soybeans from the autumn U.S. crop, costing American farmers billions of dollars in lost sales.
"It's unfortunate that Chinese leadership has decided to use the American farmers, soybean farmers, in particular, as a hostage or pawn in the trade negotiations,"
Bessent said.
Trump stated on Wednesday that when he meets with Chinese President Xi Jinping in four weeks, soybeans will be a key topic of conversation.
Bessent stated that the purchase of American agricultural products was a part of nearly all recent U.S. trade agreements, "so we're going to see other countries substitute for China."
He claimed that prices were also being impacted by a record harvest.
"On Tuesday, you're going to see substantial support for the farmers, and we're also going to be working with the Farm Credit Bureau to make sure that the farmers have what they need for next planning,"
Bessent said.
Trump's face-to-face meeting with China's Xi to establish the foundation for future trade will be very beneficial, Bessent added.
"I think with President Trump's leadership and his relationship - the respect party chair Xi has for him - that this round, which would be our fifth round of talks, should show a pretty big breakthrough,"
Bessent said.
How does this aid compare to past US agricultural assistance programs?
Previously provided substantial federal assistance for agriculture has taken the form of a comprehensive disaster relief and economic aid package, such as in American Relief Act of 2025 ($31 billion in aid covering disaster recovery and economic losses across a wide variety of crops throughout the country). This latest assistance appears more trade-related—sought to lessen the losses that are directly related to the influx of soybean exports causing from China barring purchases.
The Trump administration’s Market Facilitation Program was previously employed to provide trade-related assistance as the previous administration aid farmers $23 billion in assistance for trade disruptions caused by tariffs and restricted export markets.
Bessent’s planned upcoming announcement fits in line with the approach, as producers and suppliers would have a safety net in place when trade, or other circumstances, alter demand for U.S. agricultural exports.