China Farm Purchase Pledge Faces Market Demand Challenges

China’s pledge is supportive, but producers need confirmed sales and shipments before counting it as stronger export demand.

LUBBOCK, TEXAS (RFD NEWS) — China’s new pledge to buy more U.S. agricultural products could support farm exports, but follow-through may be difficult. Retired USDA economist Dr. Fred Gale says the White House commitment calls for China to buy $17 billion per year in non-soybean U.S. farm products, in addition to earlier soybean purchase commitments.

Those earlier commitments call for China to buy 25 million metric tons of U.S. soybeans annually from 2026 through 2028, or roughly 919 million bushels per year.

Gale says the challenge is that China’s non-soybean ag purchases from the United States have fallen sharply since the Phase One years. Lower commodity prices, weak Chinese demand, and stronger competition from Brazil could limit the value of future purchases.

Beef access has improved after China renewed approvals for hundreds of U.S. facilities, but U.S. supplies remain tight, and China’s beef imports are dominated by Brazil.

The key questions are how China defines agriculture, how purchases are counted, and whether sales are converted into actual shipments.

Farm-Level Takeaway: China’s pledge is supportive, but producers need confirmed sales and shipments before counting it as stronger export demand.
Tony St. James, RFD News Markets Specialist
Related Stories
RFD NEWS Correspondent Frank McCaffrey speaks with Texas’s Sen. Ted Cruz and Rep. Vicente Gonzalez about USMCA renegotiation and its impact on U.S.–Mexico agriculture trade.
Shaun Haney joined us to discuss Canada’s new trade agreement with China, the potential impact on farmers and exporters, and what it could mean for U.S.–Canada trade relations going forward.
National Corn Growers Association Chief Economist Krista Swanson discusses corn supply pressures, market fundamentals, policy considerations, and producer outlook for the year ahead.
Congressman Dusty Johnson of South Dakota joined us to discuss key ag policy developments and his outlook for agriculture in 2026.
RFD News correspondent Frank McCaffrey reports from Texas on the ongoing water dispute and its implications for U.S. farmers.
RealAg Radio host Shaun Haney discusses the latest developments in the Supreme Court, trade tariffs, and the future of the USMCA under President Donald Trump.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Stronger U.S.-Guatemala trade rules favor dependable, regionally integrated supply chains — rewarding execution and commitment over cost-only sourcing.
China-led demand continues to anchor soybean and sorghum exports despite weekly swings.
Shrinking slaughter capacity may delay heifer retention, complicating herd rebuilding plans.
Strong seasonal demand and manageable production growth continue to support poultry markets.
Clearer 45Z rules favor U.S. oilseeds, but final RFS volumes remain critical to locking in demand.
Even small declines in the calf crop translate into sustained supply pressure, supporting cattle prices over multiple years.