USDA Under Secretary Lindberg Highlights Agricultural Trade Wins

USDA Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindberg says he’s hearing from farmers about wins the farmers are seeing because of the United States’ lower agricultural trade deficit. Following a listening session at Dakotafest in Mitchell, Lindberg responded to a question from the South Dakota Soybean Network about trade, specifically trade with China.

“China did live up to buying the 12 million metric tons of soybeans that they agreed to in November,” said Lindberg, seated at a picnic table in the South Dakota Farm Bureau tent where the session had just ended. “And this new deal, they've already purchased six million metric tons of the 25 amillion metric tons for the upcoming marketing year. So, the one that's starting right now, it's about a year to finish out the remaining 19 million metric tons of soybeans.”

Lindberg went on to talk specifically about what the agreement with China is worth and about other results of agricultural trade negotiations with China.

“This deal is $17 billion plus that 25 million metric tons of soybeans, which is a total of about $30 billion of agricultural products from the US for the next three years,” Lindberg explained. “So, $18 billion has been the average, and this locks in $30 billion in purchases for the next three years. It's a great win; it gives our farmers a great baseline to operate off of as we continue to look to diversify those markets around the world.”

Agricultural trade with China has dropped since its $40.9 billion peak in 2022. Almost half of that total came from soybeans. New agreements have signaled an easing of trade tensions with the Chinese. And Lindberg points out other important wins for U.S. farmers in markets aside from China, including the European Union, Mexico, Colombia and Vietnam.

“And so we're continuing to see markets all around the world wanting the supply that we provide, the high quality, nutritious produce that we create here in the United States,” he said. “So, we are seeing that diversification happening. I've always been bullish about Southeast Asia as one of the markets. We will continue to see tremendous growth. We're seeing an increase in population there. We're seeing an increase in GDP per capita. And so, we want to take advantage of those kinds of opportunities.”

A commitment to include agricultural representation in new trade deals has resulted in wins for U.S. farmers, according to Lindberg, adding that USDA’s next goal is to turn agriculture market access into market share.

“Our farmers and ranchers do have new access. So, Secretary Rollins and I launched a three-point plan in the fall to increase those export opportunities. And exports are, in fact, up,” said Lindberg. “So, we are starting to see that win. That's the 50 percent reduction in the trade deficit, meaning our goal is still to get back to a trade surplus. But we've cut the deficit 50 percent in one year, given the new market access the president's been able to negotiate.”