The American Soybean Association (ASA) is calling on the U.S. government to expedite a trade deal with China in response to the serious financial difficulties faced by soybean farmers amid ongoing trade tensions.

Caleb Ragland, the ASA President and a farmer from Kentucky, highlighted the dire situation in a letter directed to the Trump administration, stating that 'US soybean farmers are standing at a trade and financial precipice.'

Ragland emphasized the extreme financial stress endured by soybean farmers, noting the continued decline in soybean prices paired with rising costs for inputs and equipment. He warned that U.S. soybean farmers face a grim future if the prolonged trade dispute with China continues.

Historically, China has been a significant player in the global soybean market, accounting for over 60 percent of worldwide imports, with the U.S. being its primary source. However, due to retaliatory tariffs, U.S. soybeans have become 20 percent more expensive than supplies sourced from South America, prompting China to pivot towards Brazilian soybeans.

As the harvest season approaches, China has made no advance purchases of U.S. soybeans, raising concerns for farmers. Ragland pointed out that the absence of an agreement with China throughout autumn could severely harm U.S. soybean producers.

To underscore the potential impact, the ASA released a white paper analyzing the long-term financial consequences of losing market share in China. The document reveals that China remains the largest buyer of U.S. soybeans, importing nearly 25 million metric tons (MMT) in marketing year 2023/24, while the European Union accounted for merely 4.9 MMT.

The stark contrast in buying power illustrates that the second-largest buyer of U.S. soybeans can only procure one-fifth of what China does. As Ragland stated, 'Every day without an agreement further erodes US farmers' market share in China.'

The association is urging the administration to act promptly to secure a deal aimed at reopening the critical Chinese market for U.S. soybeans, asserting that the health of American farmers hinges on such agreements.