Iowa Delegates Urge Administration to Prioritize Trade Deal for Soybean Farmers

By Cami Koons

Iowa lawmakers U.S. Rep. Zach Nunn and U.S. Sen. Joni Ernst, along with U.S. Rep. Derrick Van Orden, R-Wisconsin, urged a “coordinated action” across the Trump administration to prioritize soybeans in a trade deal with China and to finalize renewable fuel guidelines. 

The GOP lawmakers addressed a letter Monday on behalf of soybean producers and related industries who have been “priced out of the market” due to the impacts of the ongoing trade disputes with China. 

China, a major soybean importer, has not placed an order with U.S. producers this year. Instead, the country has turned to Argentina for several shiploads of soybeans in a move similar to the country’s actions during the trade wars of the first Trump administration when China looked to Brazil for its soybeans. 

President Donald Trump is set to meet with Chinese leader Xi Jinping Thursday, though news reports from the weekend indicated the leaders have established a framework for a trade deal that includes purchases of agricultural materials. 

Resolving the trade dispute with China was a key request in the letter from congressional delegates Monday. 

“The United States should make soybean market access a central priority in trade discussions with China and work toward the suspension or removal of retaliatory duties that are distorting global competition,” the letter said. 

Iowa Soybean Association President Tom Adam said in a statement related to the letter that agriculture “prospers” when America can lead in global trade. 

“The longer trade tensions persist, the greater the damage of permanently weakening relationships with key markets—turning the U.S. into a secondary rather than preferred supplier of soybeans,” Adam said. 

Nunn said producers are “flying blind” and asking what the administration’s plan is to fix the situation. 

“Right now, bins are full, prices are underwater, and the ongoing government shutdown is adding even more uncertainty to an already tough situation,” Nunn said. “Iowa farmers deserve to compete on fair terms, and I look forward to hearing back from the administration.”

Calls for Renewable Fuels Guidance 

In addition to a trade deal with China, the letter asks for finalization on 45z tax credit guidelines and renewable volume obligations, or RVOs, that industry leaders say will grow the renewable fuel industry and domestic demand for soybeans. 

“Agencies should work together to identify and expand alternative markets for soybeans and soybean meal, remove unnecessary barriers to trade, and deploy the full suite of tools to help U.S. farmers remain competitive,” the letter said. 

The 45z tax credit, which was initiated during the Biden administration and extended under the Republican-led “one big beautiful” law, encourages the production of low-emission biofuels, like sustainable aviation fuel. 

While the U.S. Department of the Treasury has released initial guidelines on the tax credit, the renewable fuel industry continues to call for finalized guidelines to produce fuels within the eligible emission ranges. 

Devin Mogler, the National Oilseed Processors Association president and CEO, said the soybean processing industry has invested more than $6 billion to expand capacity by more than 25% by selling into the biofuels industry. 

“But we need certainty on biofuels policy to ensure the industry can run at capacity, particularly coming off a record harvest,” Mogler said in a statement. “We greatly appreciate Congressman Nunn’s leadership in working with the administration to finalize strong RVOs and 45Z so these policies translate into value at the farmgate.”

Renewable volume obligations are part of the renewable fuel standards issued by the U.S. Environmental Protection Agency that establish standards for the quantities of biofuels to be blended into U.S. transportation fuels. 

In June, the agency proposed historic standards for the industry, including a substantial jump in the amounts of biomass-based diesel standards, of which soybeans are a feedstock. 

The letter calls for these proposed rates to be finalized. 

Finally, lawmakers in the letter wrote that farmers need communication and a strategy from the administration in order to plan for the future. 

“We’ve appreciated the openness of the Administration to meet with stakeholders and hear their concerns,” the letter reads. “However, we’ve reached a point where our producers need clear signals, not continued uncertainty, to make informed marketing and planting decisions.” 

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