WASHINGTON (RFD-TV) — Soybean growers this week are set to hear details of a potential bailout. The White House is promising to make farmers a “fortune” after their largest buyer, China, left the market and has not returned.
Meanwhile, critical services are on hold as the government shutdown continues. The Senate will gather this afternoon for another vote on a continuing resolution to fund the government.
Relief for Soybeans Promised Tuesday
Treasury Secretary Scott Bessent announced a relief package would be released late last week, with an expected release on Tuesday. The Wall Street Journal reports that it could be worth between $10 billion and $14 billion, funded in part by tariff revenue. Bessent said the money would be primarily for soybean growers who have been left in the dark since China’s absence.
Farm Bureau President Zippy Duvall has also been monitoring the fallout since China withdrew from the market. He says things are not good right now and warns that time is running out.
“Row crop prices are down, expenses are up, and now America could lose export markets,” Duvall said. “Farmers have been patient with the administration, and we’re pleased that new trade frameworks are being developed. But time is running out. We must resolve tariff disputes and get trade back on track.”
Again, details of that support from the White House are expected to be released tomorrow. As for China, President Trump is scheduled to meet with Chinese President Xi next month.
Ending The Government Shutdown
The government shutdown remains in effect, and it is another major issue the Farm Bureau is currently monitoring.
“The Farm Bureau has urged the House and Senate to work together to pass legislation that funds the government, so they can get back to work on other matters, including the regular appropriations process, as well as re-evaluating the Farm Bill,” said Emily Buckman, Director of Government Relations for the American Farm Bureau.
Another vote in the Senate is scheduled for later today, and Farm Bureau economists are urging lawmakers to come together and find a solution, quickly.
“A government shutdown impacts all Americans and has serious consequences, including for farmers,” Buckman said. “It just adds additional uncertainty, disrupts critical services.”
Shutdown’s Lingering Impact on The Ag Economy
Financial managers have also been watching closely since the government entered a shutdown last week. The longest government shutdown in history occurred in 2018, lasting over a month and costing the economy around $3 billion. However, Arlan Suderman with Stone-X notes that this is a small fraction of the overall picture.
Farm CPA Paul Neiffer says that while some already-approved relief payments were sent out before the shutdown began, others will have to wait until the government resumes operations.
“Crop reports during the shutdown are on hold. The payments for ARC, PLC, and other discretionary-type payments -- well, realistically, any payment from USDA right now is on hold while the government is under shutdown,” Neiffer told RFD-TV News on Friday. “Now, luckily for farmers that were collecting that extra 14% of ECAP, that was paid on Tuesday, September 30. So that money did go out, but everything else, we’ve got to wait for the government to open up again.”
Commodity traders are also watching the shutdown’s impact on agriculture. Sam Hudson with Cornbelt Marketing tells us everyone he works with is just holding on for the ride.
“The problem is just getting bigger the longer it lasts,” Hudson said. “In the short term here, I think you’re going to see everyone just bring their arms and legs inside the bus. I think that’s true from a trading standpoint too, because the only thing we really have to go off of without that government data, even as a barometer, whether you believe it or not, is basis and how this cash market’s going to trade, who wants ownership and who doesn’t have it?”
