BLOOMINGTON, Ill. (WMBD) — At an Illinois grain tour in Bloomington, the director of the Illinois Department of Agriculture said having no deal with China would lead to farmers going bankrupt.
“Last year, China bought $1.4 billion worth of soybeans from the state of Illinois. This year, there is yet to be one purchase of soybeans from the entire United States by China,” said Jerry Costello.
China makes up the majority of Illinois soybean sales, as the country’s 1.4 billion people use the product for its high protein and fat.
Even with all the other soybean-buying nations combined, they wouldn’t make up for the gap China could leave if a deal isn’t made, according to Costello.
He also said soybean sales still haven’t recovered from the last trade war with China during the first Trump administration.
According to the IDOA director, 62% of soybeans were being bought by China in 2017. In 2018, it went down to 18%. Fast forward to 2023, and that number is back up to 55%.
However, that growth is now at threat because of the ongoing trade war between the two superpowers.
“The relationships we literally fostered for 10 or 20 years are being broken down in nine months,” he said. “Our tariffs that we’re experiencing right now, it’s insanity.”
The Asian nation has gone to other countries to buy its soybeans. Namely, South American nations like Brazil and Argentina. The latter, which shortly after receiving a $20 billion loan from the U.S. government, cut its soybean export tax to get a deal with China.
A Chinese man at the grain tour said he prefers buying U.S. soybeans as they’re higher quality and last longer in storage.
“I hope that the relationship between America and China becomes better in the future, so that I’m able to buy more and the farmers are able to collaborate more in international trade,” said Xiaobo, according to a translator.
The Trump administration has considered giving a bailout for farmers, but Costello said this would be a one-time payout that wouldn’t make up for the lasting damages from tariffs.
U.S. Rep. Eric Sorensen, who represents areas of Peoria and the Twin Cities, said Trump prioritized Argentina over American farmers.
“Instead of giving a bailout to a self-imposed disaster, how about some common sense: stop blowing up critical trade relationships,” he said on Facebook.
Tariffs have also increased prices on farm machinery and pesticides, which have made farming more expensive, according to Costello.
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