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
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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.

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