By Julie Tomascik
Editor

China has agreed to purchase 12 million metric tons of U.S. soybeans before January, marking a step toward easing trade tensions and bringing renewed optimism to American farmers.

The purchase is part of a larger framework between the two nations that could result in China buying at least 25 million metric tons of soybeans annually over the next three years, as well as resuming purchases of other agricultural products.

No official announcements have been made, however.

U.S. soybean exports to China declined sharply in recent years amid retaliatory tariffs, shifting trade policies and volatile global markets.

The market disruption hit farmers across the U.S., including Texas.

About 95,000 acres of soybeans were planted in Texas this growing season, which according to USDA, was a reduction of more than 13,000 acres. Most of the crop is grown in the Blacklands and Upper Coast regions and is sold in markets both domestically and abroad.

Farmers are hopeful this renewed commitment signals not only an increase in export sales but also a broader reopening of agricultural trade between the two countries.

“Expanding markets and restoring purchases by China will provide some certainty for farmers who are struggling just to hold on. We appreciate the administration for listening to the needs of America’s farmers,” American Farm Bureau Federation (AFBF) President Zippy Duvall said.

The Trump administration also announced several smaller trade deals, including agreements with Malaysia, Cambodia, Thailand and Vietnam.

AFBF economists noted the trade news is good progress for U.S. agriculture, but the overall ag economic outlook is still challenging.

“There’s still some uncertainty when we talk about agricultural trade, and that makes it harder for farmers to plan and make decisions,” AFBF Economist Faith Parum said. “So, when we talk about an ag economy that’s already feeling a lot of pain, the more certainty and the more open market access we can get for farmers, the better it will be.”