Ag News

China halts buying U.S. soybeans while the two levy port fees

U.S. soybean producers are unwilling participants in the growing trade conflict the United States has with China, which halted purchases of U.S.-grown soybeans in September, the first time the Asian nation has nixed buying U.S. soybeans since 2018.

Meanwhile, on Oct. 14, the U.S. began levying port fees ranging from $50 per ton to $56 per ton on ships with connections to China, and China responded by levying similar fees on ships with ties to the U.S. - those flying the U.S. flag, built in the U.S., or owned, partially owned, or operated by U.S. companies.

In 2023, Georgia farmers produced $104.7 million worth of soybeans, according to the UGA Center for Agribusiness & Economic Development. Brooks County was the state’s top soybean producer, with the crop occupying 11,073 acres and a farm gate value of more than $6 million.

Soybean prices have hovered for the past year between $935/bu and $1,068/bu. This is significantly lower than in mid-2022 when the crop peaked at $1,733.80. Recent news that the two nations are planning to meet at the end of October has prompted some optimism among soybean producers and a small uptick in prices, from $993 on Oct. 6 to $1,028 on Oct. 20. 

(These sales prices can be found at https://tradingeconomics.com/commodity/soybeans.)

China has long been a major export destination for U.S. soybeans, but the Chinese have diminished their dependence on the U.S. for the past decade, according to the American Farm Bureau Federation’s Oct. 2 Market Intel. China instead has purchased the soybeans it needed from Brazil, Argentina and other nations.

Even before the September buying freeze, U.S. soy exports to China had curtailed significantly. In 2024, China accounted for about half of all U.S. soybean exports, at 985 million bushels. Through August, U.S. soybean exports to China in 2025 totaled 218 million bushels, which AFBF says is part of a longer trajectory in which China has diversified away from American agriculture. For U.S. farmers, this shift has meant fewer sales, a growing agricultural trade deficit and greater uncertainty about the future role of China as a market for American agriculture.

Farmers are facing an extraordinary challenge of declining export opportunities, falling crop prices and rising costs. Without reliable access to key markets, U.S. farm products risk piling up at home, putting downward pressure on prices and tightening margins. USDA’s latest forecast underscores that challenge: cash receipts from crop sales are projected to fall 2.5% from $242.7 billion in 2024 to $236.6 billion in 2025, the lowest level since 2007. The reduction reflects both lower prices and reduced sales volume. For many farmers, weaker demand abroad is compounding financial strain at home, turning strong harvests into tighter margins.

While trade with China may rebound in certain years, the larger picture points toward market diversification as the best path forward. Farmers will need access to new markets to sustain incomes and manage risk in a more volatile global trade environment.

Agriculture’s role as a cornerstone of the U.S. economy depends on strong trade flows. Policy decisions in the months ahead on tariffs, trade agreements and export promotion will play a major role in shaping the outlook for the farm economy in 2026 and beyond. For U.S. farmers, the stakes are high and the need for dependable trade partners has never been more dire.

To read the Oct. 2 Market Intel in its entirety, click here.

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