Farms.com Home   Ag Industry News

China proposes large U.S. ag purchases

China proposes large U.S. ag purchases

U.S. farmers could see an extra US$30-billion worth of ag goods exported to China per year

By Diego Flammini
Staff Writer
Farms.com

American farmers could benefit from a Chinese proposal as part of a bilateral trade agreement.

China may offer to purchase an additional US$30-billion worth of U.S. ag products per year, Bloomberg reported. China imported US$19.6 billion of American ag products in 2017, the USDA said.

Following through on the proposal could bring U.S. ag exports to China to nearly US$50 billion annually.

The added ag purchases are part of several memorandums of understanding (MoUs) American and Chinese negotiators are working on. The MoUs include agriculture, technology transfer and intellectual property.

The publishing of a hard figure could mean a deal between China and the U.S. is possible because specific terms were never previously disclosed, said Moe Agostino, chief commodity strategist with Farms.com.

“The difference this time is that we’re hearing an amount,” he told Farms.com. “In the past, the cycle has been being close to a deal then the two countries go back to their respective trading desks. Progress is being made because we didn’t have that a month ago.”

If China and the U.S. reach an agreement, how it’s structured could affect grain markets, Agostino said.

“We need to know when it starts,” he said. “If it starts at the end of the year and it’s back-end loaded, markets are going to be very disappointed.”

The USDA is confident a deal with China will help increase grain prices.

“If we reach an agreement on structural reforms, we can recover markets very, very quickly,” U.S. ag secretary Sonny Perdue told reporters at the USDA’s outlook forum yesterday.

But, at this point, it’s “premature” to comment on what China may or may not do, he said.


Trending Video

How Can We Grow More Food With Less Impact?

Video: How Can We Grow More Food With Less Impact?

For over two decades, Dr. Mitloehner has been at the forefront of research on how animal agriculture affects our air and our climate. With deep expertise in emissions and volatile organic compounds, his work initially focused on air quality in regions like California’s Central Valley—home to both the nation’s richest agricultural output and some of its poorest air quality.

In recent years, methane has taken center stage in climate discourse—not just scientifically, but politically. Once a topic reserved for technical discussions about manure management and feed efficiency, it has become a flashpoint in debates over sustainability, regulation, and even the legitimacy of livestock farming itself.

Dr. Frank Mitloehner, Professor and Air Quality Specialist with the CLEAR Center sits down with Associate Director for Communications at the CLEAR Center, Joe Proudman.