China agreed last month to end its tariff on American soybeans in exchange for the US lowering tariffs on some Chinese goods.
The trade war was hurting Indiana farmers who rely on China for a significant portion of their sales. Professor of agriculture economics at Purdue University Michael Langemeier said China’s new commitment to buy soybeans for the next three years will help them get a better price for their product.
“It had a pretty positive impact on soybean prices for this year's crop, but it also raised, raised expectations for the price in in ’26,” he said.
Better soybean prices mean farmers will plant less corn, boosting the value of that crop as well.
But even though prices are up, at almost $11 per bushel, soybeans are still way down from two years ago.
“They're still relatively low compared to the break-even prices or the production cost,” Langemeier said.
China committed to buying 12 million tons in the next two months and 25 million each year until 2028. That’s a bit lower than previous years.
