Sean Dengler.

As it stands today, delivering a bushel of soybeans to Tama-Benton Cooperative would be $9.35. For farmers, this is probably below their cost of production. These soybean prices have been in the tank, and they appear to be staying there for the near future. The main reason prices are so low is soybean production has been built upon exports to China. Soybeans usually account for 15% of all U.S. agricultural exports, making them the top food export by value according to Newsweek. It is going to hurt when China decides not to buy any, which they have not bought since May, per reporting by Politico. This is exactly where it stands for the American soybean farmer today.

Relying on China is bad policy and worse for when China also helps fund additional infrastructure investments for Brazil, our main soybean export competitor, according to the American Soybean Association. The United States has gone from being 49% of Chinese soybean imports in 1995 to only 21% in 2024. This is in stark contrast with Brazil which has gone from 2% in 1995 to 71% in 2024. The 21% is not looking likely.

While the always-rumored trade deal is going to happen according to the Trump administration, having a trade deal in place does not mean this issue will go away. China is turning the screws tightly on the American farmer and will continue to do it with or without a trade deal. There is no reason to let them have this power. With the Trump administration also talking about bailing out Argentina despite our DOGE cuts, Reuters reported China bought one million tons of soybeans after Argentina suspended their 26% export tax on soybeans.

To sum up this questionable move, I quote America’s oldest sitting member of the U.S. Senate, Iowa farmer Chuck Grassley, from his X account: “Why would USA help bail out Argentina while they take American soybean producers’ biggest market???”

Our government is willing to back a foreign government at the expense of American farmers and rural communities. Trade is good to an extent, but it is not good when it has led to a perverted outcome like this one. Policies need to be changed to give farmers a chance not to be reliant on foreign countries. The only ones benefiting from this current policy are the same ones who benefit from a rumored bailout for farmers. This is the highly concentrated agribusiness industry. If this system were to fail, their earnings and stock prices would plummet. This would also lead to economic power and independence being returned to farmers and rural America.

Unfortunately, the pain is already here for farmers. It is not going to leave soon. Instead of letting more consolidation happen and more farmers pushed off the land, it is time to focus on farmers and rural America. The United States does not need to stay a net importer of food when we have the best soil. Policy needs to be changed to set up a resilient food system with diversified farms. This is where more farmers have a chance to succeed by producing food for their fellow Americans.

This is a better option than the current situation where a fragile system is propped up by bailouts to monopolistic companies which fuel rival countries. Building a food system which promotes more farmers on the land, growing food for their fellow Americans, and driving a rural rebirth is better than trying to export our way out of a problem which will only get worse.

Sean Dengler is a writer, comedian, now-retired beginning farmer, and host of the Pandaring Talk podcast who grew up on a farm between Traer and Dysart. You can reach him at sean.h.dengler@gmail.com.