MARC JACOBS
Hutch Post
China’s agreement to purchase 180,000 metric tons of soybeans from this year’s U.S. crop could mark one of the biggest agricultural trade developments in years — and Kansas producers stand to gain in a major way.
According to Senator Roger Marshall, the deal represents roughly $15 billion in U.S. soybean exports nationwide and could generate around $1 billion annually for Kansas soybean farmers. Kansas sorghum producers are also expected to benefit, with an estimated additional $1 billion in sorghum sales.
“Kansans grow about half of the entire sorghum crop for the country, and believe it or not, China typically purchases about 80 percent of that,” one official said. “This is the biggest news we’ve had in agriculture in years.”
The deal, reached during President Donald Trump’s recent overseas visit, is being hailed as a breakthrough in reopening key markets in China and Southeast Asia. The agreement is also seen as a potential boost for other major Kansas industries, including aerospace.
"China is sitting there. They can buy Boeing jets, or they can buy Air France jets” Marshall said. "We're the ones here that are buying all of your T shirts and tennis shoes and your televisions and your iPhones, all these types of things. So, I think it's going to mean a lot to to multiple industries across the state of Kansas, agriculture and aerospace, leading the way"
Beyond agriculture, the agreement may signal a broader thaw in U.S.-China relations. Marshall believes that President Xi Jinping is expected to hold additional talks with President Trump.
"I don't doubt that President Xi will make some type of a trip here to America, and then, as these other world conferences happen from time to time that they're both there, I expect them to build upon this relationship." Marshall said.
Some observers say the move could also help stabilize global markets and ease tensions across Southeast Asia. "You know when there is, when there is world peace, the entire economy, the world economy grows as well." Marshall added.