President Donald Trump counts U.S. farmers as one of his most loyal constituencies, but the management’s recent move to expand economic support for Argentina has drawn the ire of the agriculture industry.

Treasury Secretary scott Bessent said on social media on Wednesday that he and Trump spoke at length with Argentina president Javier Milei about plants to financially support Argentina to assist in its stabilization. The Treasury is negotiating with Argentina for a $20 billion swap line with Argentina’s central bank,Bessent said on X.com. As part of its effort to increase the flow of capital,Argentina also suspended its export taxes this week,including on soybeans.

amid the negotiations with the U.S., Argentina reportedly strengthened its trade partnership with China, which ordered at least 10 cargoes of soybeans from the South American country, according to Reuters, which cited multiple traders.

The moves have dealt a blow to soybean farmers in the U.S., who are strongly dependent on exports to china, and have continued to be priced out of the global market due to tariffs hiking the cost of their crop in the midst of its busy harvest season. According to the U.S. Department of Agriculture’s weekly export summaries, China has not bought U.S. soybeans since May.

“The frustration is overwhelming,” the American Soybean Association (ASA) President Caleb Ragland said in a statement on Wednesday. “U.S.soybean prices are falling, harvest is underway, and farmers read headlines not about securing a trade agreement with China, but about Argentina securing new trade opportunities with our top customer.”

Soybean Market Struggles: Farmers Face Losses amid Trade Uncertainty

Soybean farmers are bracing for potential financial hardship as trade tensions and logistical bottlenecks create a challenging market. Despite a potential trade deal with China, many farmers find themselves unable to move their crops efficiently, leading to storage issues and price drops.

The core of the problem lies in infrastructure. While there’s growing demand for soybeans – some destined for crushing facilities to be repurposed as oil or used in ethanol – many soybean farms aren’t located near plants capable of processing and utilizing the crop domestically. Kyle Jore, an economist and farmer in Thief River Falls, Minnesota, and secretary of the Minnesota Soybean Growers Association, explains that even with a new trade agreement, transportation is a major hurdle. Current bookings for transporting crops out of state are completely full due to the ongoing corn harvest.

“We’re probably just going to plan to sit on the soybeans and wait,” Jore said.

Farmers attempting to mitigate losses are often forced to sell to agricultural co-ops, but at significantly reduced prices compared to market value. This means substantial financial setbacks for producers.

“In the meantime, though, the producers that sell are taking large losses,” Jore said. “and they’re going to have to feel those losses.”

extension economist Loy emphasizes the broader consequences for rural communities. The financial health of farms directly impacts the vitality of thes areas.

“If farms in those rural communities aren’t triumphant, if they face financial hardships, then those rural communities also suffer, too,” Loy said. “All of these rural communities rely on agriculture to some degree. In its most extreme, if farms close up and businesses no longer have the customers there-or at least the customers don’t have the money to support them-businesses close and people move out.”

aftershocks from the 2018 trade war

Jore describes the current situation as a painful reminder of the past.

During the Trump administration,U.S. farmers experienced a $27 billion loss in agricultural exports between mid-2018 and 2019.