October 28th, 2025
Bessent: Deal Set for China to Begin Importing U.S. Soybeans
Treasury Secretary Scott Bessent said he expects that China won’t impose export controls on rare earth mineral exports, and the U.S. won’t impose 100 percent tariffs on China. During separate interviews over the weekend, Bessent said trade negotiations with China have gone very well. The talks were in anticipation of President Donald Trump’s meeting with Chinese Premier Xi (ZHEE) Jinping this week. ”President Trump gave me maximum leverage when he threatened 100 percent tariffs if the Chinese put their export controls on rare earth minerals in place,” Bessent said. Because that’s likely been averted, he said the tariffs will be postponed as well. “We also agreed on substantial agricultural purchases for America’s farmers,” Bessent added. Bloomberg said if the pledge is confirmed by Beijing, it will bring major relief to U.S. farmers struggling with financial stress after China, the world’s top soybean buyer, walked away during the U.S. harvest season.
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Commodity Groups Express Optimism After Weekend Announcements
The Trump administration announced a series of trade deals and frameworks with several Asian countries, some of which include new market access for U.S. ethanol. The deals also include additional opportunities for corn and corn products, like distillers dried grains with solubles. National Corn Growers Association President Jed Bower said this is good news for corn growers. “Eliminating tariffs on ethanol exports to Malaysia and Cambodia will boost demand,” he said. “The announced frameworks with Thailand and Vietnam also hold promise.” Meantime, the American Soybean Association applauded reports of progress in U.S. negotiations with China. “ASA is encouraged by Treasury Secretary Bessent’s comments on productive trade talks with China,” said President Caleb Ragland. “Signs of purchase commitments are positive steps, and we look forward to learning more details about the possibilities later this week.” ASA hopes negotiators keep American soybeans at the center of the trade discussions.
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U.S. Pork Industry Gets Good News
President Donald Trump and his administration have signed trade deals with Malaysia and Cambodia, with the Malaysian portion having an enormous economic potential for America’s pork producers. “We’re grateful to the president for increasing market access for U.S. pork to Malaysia, a country that’s been importing pork despite limited plants being eligible for export,” said NPPC President Duane Stateler. “More than 25 percent of U.S. pork production gets exported, so producers count on exports to help keep their farms afloat, especially in times of uncertainty.” The deal with Malaysia will open access to all U.S. facilities included in the Food Safety and Inspection Service Meat, Poultry, and Egg Inspection Directory. Pork exports to Malaysia hit record levels of over $24.5 million in 2024, a significant amount given that only eight U.S. plants are currently eligible for export. Exports to Malaysia have increased by over 1,700 percent in the last five years.
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Rabobank: Food Inflation Outpacing Overall Inflation
Rabobank says food inflation continues to outpace overall inflation, and restaurants feel the pressure of nine straight quarters of declining traffic, but some chains are bucking the trend and growing in visits and spending. U.S. retail beef prices continue rising, with the USDA’s all-fresh beef price reaching a record $9.18 per pound in August. U.S. cattle slaughter from January through September is down 1.5 million head, a seven percent drop compared to the same period last year. Pork prices are still well ahead of year-ago levels and the five-year average, with cutout values of $109 per hundredweight averaging 15 percent above last year. Chicken production also continues to outpace year-ago levels, and chicken prices have also come down sharply in recent weeks. August milk production increased 3.2 percent versus last year, and at 9.52 million cows, the herd is the largest it’s been since the mid-1990s. July dairy exports were up seven percent year-over-year.
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AEI: Farm Machinery Interest Expense at All-Time High
Using the Kansas City Federal Reserve’s farm loan summary data, the economists at Agricultural Economic Insights measured how much it costs to borrow $1,000 for farm machinery. For the first half of 2025, the cost was $154 for every $1,000 borrowed. Going back to 1977, producers have never spent this much to finance $1,000 of farm equipment debt. In recent years, the measure was approximately $135 in 2024 and 2023. In 2022, the expense was $100, and only $79 in 2021. At first glance, the 2025 record may be surprising as it doesn’t align with the 1980s, when the average interest rate on a farm machinery loan approached 18 percent in 1981. Back then, the total interest expense for the life of the loan remained low because the average duration was short, usually 11 months. By the first half of 2025, the average loan maturity was 45.3 months.
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National Ag Day Set For Tuesday, March 24, 2026
The Agriculture Council of America announced that March 24, 2026, will be National Agriculture Day with the theme of “Together We Grow.” Ag Day 2026 also celebrates 250 years of progress in agriculture. Activities planned for March 24 include in-person events in Washington, D.C. A core leadership team of college students will participate in the D.C. events, along with representatives of national farm and commodity organizations, and the food, fuel, and fiber communities. ”Students are interested in advocating on behalf of agriculture and their future roles in the industry,” said Jenny Pickett, ACA President. “Their participation in National Ag Day Activities provides a glimpse of the future of agriculture.” More and more students are finding careers in agriculture, including scientists, biologists, food safety technicians, livestock nutrition specialists, and many other careers. “A student doesn’t have to be a farmer or have a direct on-the-farm job to be involved in agriculture,” Picket added.
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