U.S. Treasury Chief Says Personal Farming Ties Underscore Urgency of Resolving China Soybean Dispute

U.S. Treasury Secretary Scott Bessent said the partial halt in Chinese purchases of American soybeans has affected him directly because he farms soybeans in North Dakota, and he indicated that weekend talks with Beijing have produced a broad outline intended to restart sales.

Speaking on ABC News’ “This Week” on Sunday, Bessent explained that a two-day negotiating round in Madrid generated what he called a “substantial framework” to address agricultural trade concerns. He added that the provisional understanding will be detailed after President Donald Trump meets Chinese President Xi Jinping later this week in South Korea.

“I am actually a soybean farmer, so I have felt this pain, too,” Bessent told host Martha Raddatz when asked about the financial strain on growers caused by the cutoff. According to his federal financial disclosure, the secretary owns soybean and corn acreage in North Dakota valued between $5 million and $25 million, yielding annual rental income ranging from $100,000 to $1 million.

Background on the Trade Standoff

China bought more than half of all U.S. soybeans in both 2023 and 2024, importing crops worth nearly $12.8 billion in 2024. The commodity is a key feed ingredient for China’s pork and poultry sectors and a crucial export earner for Midwestern states. Purchases fell sharply this year after the United States imposed tariffs on a range of Chinese goods, prompting Beijing to suspend large-scale soybean orders in retaliation.

The interruption pressured domestic prices and farm revenues. Government data show that soybean futures dropped more than 15 percent between January and July, while inventories at U.S. grain elevators climbed. A U.S. Department of Agriculture analysis underscores soybeans’ role as the nation’s single-largest agricultural export.

Bessent, whose net worth Forbes estimates at roughly $600 million, built his fortune in hedge funds before joining the administration. His personal stake in soybean production has drawn attention against the backdrop of farm-state criticism that Washington’s tariff strategy has left growers vulnerable.

Details of the Weekend Talks

Negotiators from both governments met in Madrid on Friday and Saturday to explore a path toward de-escalating the dispute. Bessent characterized the outcome as a preliminary arrangement that still requires presidential approval. He did not disclose specific concessions but signaled confidence that the soybean sector will “feel very good” about conditions for the current season and “several years” ahead once the agreement is announced.

The Treasury chief’s remarks align with statements from other administration officials who suggest targeted relief for farmers could be part of a broader package covering market access, intellectual-property rules, and subsidy practices. Trump and Xi are expected to review the draft in bilateral talks on the sidelines of a regional security summit in Busan, South Korea, later this week.

Impact on American Farmers

Agricultural economists say the stoppage has been costly. The American Soybean Association estimates that unsold inventories represent billions of dollars in lost revenue. Farmers also face higher storage costs while they await clarity on market conditions. Several producers have resorted to alternative crops or sought temporary federal aid.

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During Sunday’s interview, Raddatz noted that “American farmers have really suffered,” pressing Bessent on whether tangible relief is imminent. The secretary avoided specifics but asserted that the newly crafted framework directly addresses supply-chain disruptions triggered by China’s boycott.

Market watchers will be looking for signs of resumed Chinese demand, which could stabilize prices ahead of the U.S. harvest season that accelerates in September. Analysts caution that any agreement must include firm purchase commitments and timelines to reassure growers who are already planning for the 2026 planting cycle.

Next Steps

The Treasury Department did not release further details about the Madrid discussions, and Beijing has yet to comment publicly. The White House said only that Trump expects a “frank exchange” with Xi in South Korea. If a deal is finalized, it would be the first tangible easing of tensions since the two countries began levying tariffs on each other’s goods earlier this year.

Bessent’s dual role as a senior economic policymaker and farmland owner places him at the intersection of national trade strategy and individual economic consequence. His disclosure that he “felt the pain” of lost soybean sales was the first time a Cabinet-level official acknowledged personal financial exposure to the trade fight.

Until a formal accord is revealed, farmers and grain traders remain cautious. Futures markets on the Chicago Board of Trade closed mostly flat on Friday, reflecting uncertainty over whether negotiations will translate into near-term shipments. Industry groups have urged both governments to restore traditional trading volumes quickly to prevent further erosion of rural incomes.

Trump’s meeting with Xi is scheduled for Thursday. Observers say the leaders could endorse the framework or direct negotiators to continue talks, leaving the soybean question unresolved. Either outcome will influence planting decisions, equipment purchases, and credit lines across America’s farm belt in the coming months.

Crédito da imagem: Violeta Santos Moura / Reuters