China Agreement Holds Promise

Big news out of China this week, where the country has agreed to buy agricultural products (including beef and poultry) at an annualized rate of $17B per year for 2026, 2027, and 2028. 

The White House made this announcement on Sunday, two days after President Trump came back from a summit in Beijing where he tried to ease the burdens on U.S. farmers after he launched the trade war last year.

Additionally, China will purchase 25M metric tons of soybeans, per an agreement from October.

Background: The U.S. exported around $24B ag products to China in 2024. Soybeans made up about $11B of this total.

And this: China will establish bilateral boards of trade and investment with the U.S.

Soundbite: “U.S. Trade Representative Jamieson Greer said Sunday the trade board would help the two countries decide which exports are charged tariffs and which are exempted.” — Jonathan Cheng, Wall Street Journal

Not all rainbows and butterflies: Experts say China might not be the biggest agricultural buyer for long. China has made food self-sufficiency a core pillar of its economic and national security. In another 15 years, China could become a net exporter of poultry, dairy, eggs, and aquatic products. This would have huge implications on world markets.

But for now farmers have a little more confidence for the coming year, knowing there will be more certainty and consistency in the marketplace with the most recent Chinese agreement.