When American soybean farmers worked hard and spent a lot of money on their fields this year, they thought China would call, just like it had in the past. Instead, they’re having to deal with piled-up soybeans. Meanwhile, Washington gave Argentina a $20 billion swap line and bought Argentine pesos to keep their economy stable. Why? And how are American farmers supposed to compete now?
“We’re Subsidizing the Competition”: The Argentina Bailout That Backfired
Several agriculture groups are angry that the U.S. Treasury finalized a $20 billion currency swap deal with Argentina and directly bought pesos. It’s not like any other foreign aid; this is a lifeline for a country whose soybean industry just got a big boost.
President Javier Milei of Argentina lowered taxes on soybean exports. Soon after, China bought about 20 shiploads of Argentine soybeans. That lowered the price of soy around the world, making it harder for U.S. growers to compete. Also, this season, the United States has stopped soy exports to China because Beijing put in place 20% retaliatory tariffs.
It’s a sharp irony that U.S. tax dollars prop up Argentina’s economy while Chinese buyers rush in to buy its soy, which the U.S. could have sold if not for tariff policies.
Read Next: How Trump’s One Big Beautiful Bill Boosted GOP Wealth in Congress
“They Stabbed Us in the Back”: The Farmers Left Holding the Bag
Farmers in Iowa, Minnesota, and Kansas report that China hasn’t bought anything this year. Futures prices for soybeans are estimated to have dropped to around $9–$10 per bushel, down from $15 just a few years ago.
These farmers feel betrayed. The government shut down markets but still made money flow to Argentina. The administration is now thinking about a $10–15 billion bailout to help farms. Still, that help seems too little and too late.
Farmers only see political showmanship and not a strategy. A lot of them see it as the government stabbing them in the back.
Washington’s trade policy is really just hurting the economy. The U.S. gave China a new source of cheap soy by underwriting Argentina. And farmers in the US? They are left to watch as their markets dry up while taxpayer money goes to the competitors ruining them.
Read Next: How the GOP Is Using the Government Shutdown to Attack Healthcare