HARRINGTON, DE- For months, Delaware farmers have faced uncertainty from the U.S.–China trade war — but a new agreement may bring hope for one of the state's leading crops: soybeans.
On Thursday, the U.S. and China announced a soybean deal, ending months of uncertainty for American farmers concerned that China's extended boycott could devastate their crops.
Under the agreement, China will purchase 12 million metric tons in the coming months and 25 million metric tons annually for the next three years.
For Kent County soybean farmers David Marvel and John Comegys, the past few months have been difficult, as low prices, high costs, and the U.S.–China trade war have left their crops caught in the middle.
John Comegys, with the American Soybean Association, says the combination of tariffs and other factors has hit farmers hard.
"The tariffs not only affect prices — they lowered the soybean prices — but they also increase the cost of our inputs. So we're getting squeezed on both sides."
When tariffs were enacted, China — the largest buyer of American soybeans — shifted its purchases to Brazil, leaving U.S. farmers struggling to find markets. A similar situation occurred in 2018 during the first Trump administration, when trade disputes again disadvantaged U.S. farmers.
Comegys says the tariff on U.S. soybeans has made American farmers uncompetitive against South American suppliers.
"Nobody wins in a trade war except for, in this case, maybe Brazil."
But today, Comegys says there is finally some good news after the U.S.–China soybean trade truce was announced.
"They've agreed to buy 12 million metric tons in the next couple of months and then 25 million metric tons for the next year after that."
While some details are still being finalized, farmers like David Marvel with the Mid-Atlantic Soybean Association say they are cautiously optimistic and are waiting to see how the deal plays out in the coming weeks.
"China has been known to back out of things. But that speculation has ignited enough interest to start putting some money back into the markets."
In Delaware, soybeans are the state's second-largest crop, and agricultural leaders like Drew Harris, a University of Delaware Kent County Agricultural Extension agent, say the deal could finally provide relief.
"It should really boost the overall soybean prices that we're able to get at the granary because there's more demand for it."
Wm. Donald Clifton, Delaware Secretary of Agriculture, says the agreement could help restore much-needed stability to the soybean market.
"If the 25 million are realized, we would be substantially back where we started."
While the overall deal has been announced, several key details remain unclear. Farmers remain cautiously optimistic, seeing the trade agreement as a key move to support Delaware’s soybean market.