WASHINGTON, D.C. (RFD-TV) — The agriculture sector is reacting with cautious optimism following renewed trade talks between the United States and China. While the newly announced one-year agreement has sparked hope for stronger exports and eased barriers, many in the industry are waiting on full details before celebrating.
U.S. Senator Roger Marshall (R-KS) joined us on Thursday’s Market Day Report to share his perspective on the development and its potential impact on American producers. In his interview with RFD-TV News, Sen. Marshall emphasized the significance of President Trump’s leadership in reaching this latest understanding.
“I think this is one of the most successful trips a United States president has ever made from an economic standpoint — this could mean about $15 billion a year in sales to American soybean farmers, probably $2 billion of sales in the sorghum industry as well,” Sen. Marshall said. “He’s got sharp people around him. [Trade] Ambassador Greer is just an ultra-sharp guy, and Scott Bessent is one of the sharpest people I’ve ever met as well. So, I think that we’ve got our thumb on them right now, and it’s just so, so important who’s in the White House to enforce these trade agreements.”
He said this is good news for soybean farmers, but also a huge sigh of relief for the sorghum sector. Noting that China’s purchase may also pressure Mexico to buy more sorghum as prices rise.
“Your listeners, I’m sure they understand this, is that China buys about 40-50% of our soybeans, annually on a typical year, and then, along with sorghum, they’re probably buying 80-90% of it, so this is huge news. And we’ll rely on President Trump to enforce this trade agreement. That’s what’s so important. For the last four years, we didn’t have anyone in the White House enforcing the trade agreements. One last point: I think now that China is starting to buy, especially the sorghum, you’re going to see Mexico move as well. You’re going to see the prices start to come up, and that’s going to force Mexico to buy some more sorghum.”
Sen. Marshall noted that caution remains warranted given China’s record of failing to follow through on trade commitments.
“They typically never have, right? They typically never have unless Donald Trump is the President,” Marshall said. “I think that he is the main card here, that he has shown exactly what he’s willing to do. That he went in there and bargained from a position of strength. Y’all remember the Trans-Pacific Partnership (TPP)? The whole idea is that we would pick up all the pieces around China, all their other trade partners. Well, basically, Trump did it. He’s going to stop their trans-shipment to send t-shirts to Vietnam, and then Vietnam sells them here to get a lower tariff – so Trump gets this.”
Marshall discussed China’s pledge to purchase more U.S. soybeans and highlighted other key aspects of the deal important to U.S. agriculture, including restored commodity flows and commitments related to rare-earth minerals vital to the nation’s energy, technology, and defense sectors. Marshall hopes increases in domestic production will lead to lower input costs for farmers and ranchers.
“I do hope input costs come down. That’s probably the big one I’m thinking there. Soybean prices are what, over $10 a bushel? That used to be a pretty good price, but with input costs today, it’s not. I’m hoping as these tariffs stabilize, the input costs for my farmers will come down. And interest rates — remember interest rates, that’s so important — average farmer in Kansas, a million-dollar operation loan, so we’re seeing interest rates were cut again yesterday. So that’ll have a big impact on our input costs. You’ve got to look at all this — you can’t look at anything in silos.”
He also addressed China’s new tariff reductions on fentanyl-related exports — down from 20 percent to 10 percent — and what that could signal for broader tariff relief across industries.
“Of course, it’s somewhat complicated,” he said. “These tariffs have led to more American manufacturing. That we’re going to start making our own aluminum, our own steel. We’re going to be making more of our pharmaceutical ingredients. We’re trying to move—we are moving more rare-earth minerals here as well. I think that is what the tariffs have done — is given, most importantly, a chance for American industry to start up once again and not let China come in and undercut us.”
Additionally, he commented on potential benefits for U.S. oil and gas producers, citing his recent X post about China’s plans to begin purchasing American energy.
“So many of my farmers are in the oil energy field as well, right? So the cost of a barrel of oil, even though it may not be good at the gas station, is good for a lot of my farmers and ranchers as well,” Marshall explained. “So, look, China has to purchase natural gas from somebody — that’s really what we’re talking about — and oil. So rather than Russia, hopefully they’ll be buying it from Alaska. That trip from Alaska to China is not nearly as far as it is from a Kansas oil well. And overall, that will bring the price of oil up a little bit and stabilize it. The good news, again -- a promise made, a promise kept – the price of gasoline back home, $2.50 a gallon, diesel coming down as well for my farmers and ranchers.”
Beyond trade, Marshall weighed in on the ongoing government shutdown and its ripple effects across agriculture and Americans as a whole.
“I think this is a big inflection point this weekend as we see the SNAP program end. That’s going to impact 42 million Americans—blue states and red states as well.” Sen. Marshall said. “I think that TSA and Air Traffic Controllers [are] missing their second paycheck; Head Start [is] shutting down; WIC [is] running out of money— I think this is coming to a head. Hopefully, my friends across the aisle will open government again. They’ve had 13 chances so far to vote to do that — and then I’m very happy to address any issues they want to address. So, maybe an inflection point this weekend.”
