American Soybean Association CEO Steve Censky says the escalation of trade tensions with China are concerning. Censky says an announcement from President Trump that he intended to cancel his upcoming meeting with China’s president came as a surprise. “Just recently, the President posted on Truth Social that that was his intent, was to get a deal on soybeans with President Xi and China at the end of the month when they meet.”
In addition to canceling the meeting, President Trump also threatened to impose “massive” new tariffs on China in response to Beijing’s announcement that it would restrict exports of rare earth minerals.
Censky says the latest announcement is a setback in resuming trade between the two countries and underscores the importance of diversifying export markets for soybeans.
He states that China historically imports more U.S. soybeans than the rest of the world combined. “We desperately need China. No market can replace China, but we also have opportunities to try to increase exports to a lot of markets around the globe.”
Censky says increasing domestic demand also has to be part of the solution, which means the Trump administration needs to finalize its renewable volume obligations. “They proposed really substantial increases in, about a 67% increase in bio-based diesel use, 50% RIN discount on imported feedstock so we wouldn’t have Chinese UCO (used cooking oil) or Brazilian beef tallow displacing soybean oil in those markets.”
He says the administration also needs to fully reallocate any Small Refinery Exemptions.
Censky says trade wars are harmful for all of agriculture, and ASA remains optimistic negotiations can resume, and the trade relationship can be restored.
The American Farm Bureau Federation has also sent letters to Congress and President Trump saying long-term solutions are needed to ease the extreme economic pressures in farm country. That includes securing fair and enforceable trade agreements, passing biofuels policy, and enforcing laws and regulations that protect competition.
Farm Bureau also said leaders should authorize robust bridge payments for farmers before the end of the calendar year to provide meaningful support to farmers. Farm Bureau says this emergency aid will only temporarily ease the severe economic pressures.
EDITOR’S TAKE:
Steve Censky was the Deputy Secretary of USDA during the first Trump Administration. He has a very seasoned perspective on trade with China. He has also been the CEO of the American Soybean Association for nearly three decades (minus his stint with the Trump Administration). It is encouraging that he is pushing for a more reasoned approach with China. And AFBF is the largest general farm organization in the U.S. Their call for longer-term solutions and market access will be taken seriously by Congress and the White House. In fact, it now appears that President Trump will most likely meet with President Xi later this month as previously scheduled.
How concerned are farmers/ranchers in your area? You should take time to discuss these policy matters with them. It shows your concern for their business and their welfare. You learn firsthand what their concerns are at the moment. Most likely there is a state soybean association or Farm Bureau where you could get additional information on this topic. You can then strategize just how to use that knowledge in selling to the farmers in your area. For example, we know that soybean producers are under stress right now. But if they are like most farmers, they’re very optimistic overall about the future. It might be the perfect time to promote CADFI, which can shape payment schedules to expected income flows on the farm or ranch.
