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Reducing American Agriculture’s Reliance on China: A Necessary but Painful Path Forward

Posted on May 5, 2025 by AgroWars

As an advocate for American farmers, I’ve seen firsthand the toll that global trade dynamics can take on our rural communities. For decades, American agriculture has leaned heavily on China as a key market for soybeans, pork, corn, and other commodities. In 2022, China accounted for 19% of U.S. agricultural exports, with soybeans alone representing over half of our farm exports to the country. But this dependence has become a double-edged sword, especially as trade tensions escalate into what feels like a full-blown economic war. Reducing our reliance on China is not just a matter of economic strategy—it’s a matter of national security, food sovereignty, and the survival of our family farms. However, the road to independence will be fraught with pain, requiring bold policy, innovation, and resilience from farmers and lawmakers alike.

Why Reducing Reliance on China Matters

The importance of diversifying away from China cannot be overstated. China’s role as the world’s largest commodity buyer gives it immense leverage over American agriculture. When trade disputes flare, as they did during the 2018-2019 trade war, China’s retaliatory tariffs slashed U.S. agricultural exports by $27 billion, hitting soybeans, corn, and pork hardest. Farmers in states like Iowa, Nebraska, and Illinois bore the brunt, with many relying on federal bailouts to stay afloat. The recently reignited trade war, marked by China’s 34% tariffs on U.S. goods announced in April 2025, threatens to repeat this devastation. A leading U.S. agriculture exports group has called the current situation a “full-blown crisis,” with losses piling up from canceled orders, like 12,000 tons of pork.

Beyond economics, there’s a deeper issue: food security. Allowing a geopolitical rival to hold sway over our agricultural markets risks our ability to feed ourselves and maintain control over our supply chains. China’s strategic moves to diversify its own agricultural imports—sourcing soybeans from Brazil and corn from Russia—show it’s preparing for a world less dependent on American farms. If we don’t act, we risk becoming a secondary player in global agriculture, tethered to a market that can pull the rug out from under us at any moment.

Equally concerning is China’s growing ownership of American farmland. While Chinese entities hold less than 1% of foreign-owned U.S. agricultural land (about 384,000 acres as of 2020), their acquisitions, like the 2013 purchase of Smithfield Foods, raise red flags. These deals often include farmland, water rights, and intellectual property, potentially giving China influence over our food production. Lawmakers warn that such ownership, especially near military bases, poses national security risks. The trend of Chinese investment in agribusiness, like Syngenta and fertilizer companies, only deepens these concerns.

The Painful Path to Diversification

Reducing reliance on China won’t be easy. American farmers have spent decades building trade relationships with China, which became a top buyer of U.S. soybeans by 2017. Replacing this market requires finding new buyers, a process that could take years and billions in investment. Countries like India, Vietnam, and the European Union have potential, but they lack China’s scale and demand. For example, the EU has increased purchases of U.S. goods, but it can’t absorb the volume China once did. Developing markets in Africa or the Middle East is promising but requires infrastructure and diplomatic efforts that won’t yield immediate results.

The economic fallout will hit farmers hardest. Retaliatory tariffs already depress crop prices, with soybeans and corn exports to China dropping 77% and 88% respectively during the 2018-2019 trade war. A renewed trade war could push more farmers toward bankruptcy, especially small and mid-sized operations already struggling with rising input costs and labor shortages. The Kentucky Corn Growers Association warns that another trade war could permanently cede market share to competitors like Brazil and Argentina, who expanded production during past disputes. Federal aid, like the $28 billion bailout in 2018-2019, may cushion the blow, but farmers want trade, not handouts. As Iowa farmer Denny Friest put it, “We need fair access to markets, not government checks.”

Transitioning to new markets also means investing in innovation. American farmers must adopt precision agriculture, smart farming, and climate-resilient crops to compete globally. These technologies are costly, and without significant federal support, many farmers can’t afford them. Meanwhile, China’s 2024-2028 plan to advance its own smart farming shows they’re not standing still. If we don’t keep pace, we risk losing our edge as the world’s low-cost food producer.

Legislative Efforts to Counter Chinese Influence

Lawmakers are stepping up to address China’s foothold in American agriculture, particularly through legislation targeting farmland ownership. In September 2024, the Republican-controlled House passed HR 9456, the Protecting American Agriculture from Foreign Adversaries Act, with a 269-149 vote. Sponsored by Rep. Dan Newhouse, the bill restricts citizens of China, Russia, North Korea, and Iran from purchasing U.S. agricultural land, requiring the Committee on Foreign Investment in the United States (CFIUS) to review such transactions. The Biden administration opposed the bill, citing overlap with existing safeguards, but bipartisan support reflects growing alarm over foreign influence. The Senate has yet to act, and with a packed legislative calendar, its fate remains uncertain.

On the state level, 24 states have imposed restrictions on foreign land ownership, with Arkansas leading the charge. In 2023, Gov. Sarah Huckabee Sanders ordered Syngenta, a Chinese-owned company, to divest a research center in the state, marking a bold enforcement of foreign ownership laws. States like Florida and Texas have also tightened rules, though some, like Florida’s, face legal challenges for potentially violating constitutional rights. These efforts aim to protect national security but risk straining trade relations with China, which could retaliate with further tariffs.

Bipartisan bills like the FARMLAND Act, championed by Sen. Joni Ernst, and the Securing American Agriculture Act, introduced by Rep. Ashley Hinson and Sen. Ben Ricketts, seek to bolster oversight. The FARMLAND Act would strengthen USDA’s role in tracking foreign land purchases, while Hinson’s bill mandates audits of supply chain vulnerabilities exploited by China. These measures are critical, but gaps in data collection—highlighted by the Government Accountability Office in 2024—complicate enforcement. The Agricultural Foreign Investment Disclosure Act of 1978 requires foreign entities to report land transactions, but inconsistent enforcement and incomplete data hinder progress.

What Lies Ahead

If the trade war persists, the next few years will be turbulent for American agriculture. We can expect continued price volatility, with soybeans, corn, and pork facing the greatest risk. Farmers may shift to crops less dependent on export markets, like wheat or specialty crops, but this requires time and capital many don’t have. Rural economies will suffer as farm incomes drop, potentially accelerating farm consolidation and the loss of family operations. The National Farmers Union warns that the economic strain has reached a “breaking point” for many producers.

On the trade front, China’s diversification efforts will likely intensify. In 2024, China’s agricultural imports from the U.S. fell 14% to $26 billion, while it boosted imports from Brazil and Russia. If this trend continues, American farmers could permanently lose market share, undoing decades of trade development. The Phase One trade deal of 2020, which promised $40 billion in annual U.S. agricultural purchases, fell short by $13 billion, showing China’s willingness to pivot away from us.

Legislatively, we’ll likely see more states and Congress push to curb foreign land ownership, though political gridlock and legal challenges could slow progress. The FARM Act, which allocates $55 billion to combat foreign influence in agriculture, signals a growing commitment, but bureaucratic inefficiencies must be addressed to make it effective. Meanwhile, farmers will need support to adopt new technologies and access new markets. Programs like farmland loans for regenerative agriculture, launched by FBN and the Walton family, could help, but they’re just a start.

A Call to Action

Reducing American agriculture’s reliance on China is a daunting but essential task. It’s about more than economics—it’s about ensuring our farmers can thrive without fear of foreign leverage. The pain of lost markets, lower prices, and costly transitions will test our resolve, but American farmers are no strangers to hardship. With smart policies, robust investment, and a commitment to innovation, we can build a future where our agriculture stands independent and strong. Lawmakers must act swiftly to pass and enforce legislation like the FARMLAND Act and HR 9456, while farmers need access to the tools and markets to compete globally. The trade war may rage on, but with unity and foresight, we can protect our land, our food, and our way of life.

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