With China refusing to purchase U.S. soybeans and the 2025 harvest piling up in silos, Treasury Secretary Scott Bessent has confirmed that a "substantial support" package for farmers is expected to be announced Tuesday, aiming to stabilize prices and provide a financial cushion for growers grappling with plummeting export demand.

Speaking Thursday on CNBC, Bessent called the situation "unfortunate," accusing Chinese leadership of using American soybean farmers as "hostages or pawns" in ongoing trade negotiations. The lack of Chinese orders for this year's crop - paired with a record U.S. soybean harvest - has pushed storage capacity to the brink and depressed already fragile commodity prices.

"This is a record harvest," Bessent said. "The harvest is so big that we may run out of storage. So that's also affecting prices."

According to sources close to the administration, the aid package would be backed in part by tariff revenues collected on Chinese imports. While the legal mechanism remains under discussion, President Donald Trump and Agriculture Secretary Brooke Rollins met with Bessent in the Oval Office Wednesday to map out the plan, which may draw from the USDA's Section 32 spending authority. That program allows tariff receipts to be used to support agricultural producers without requiring new appropriations from Congress.

Senator John Hoeven told Agri-Pulse that lawmakers are ready to support executive action as soon as the administration is ready to move. "We want to be ready to go when the president and secretary decide it's time," he said, emphasizing that the aid package could serve not only as relief but as leverage in upcoming trade talks with China.

Bessent also made clear that any assistance package is not just about this season, but about ensuring farmers have what they need for the next planting cycle. "We're going to be working to make sure that farmers have what they need for the next season," he said, pointing to broader concerns about credit access and planning under current market volatility.

The aid announcement is expected just weeks ahead of Trump's scheduled meeting with Chinese President Xi Jinping in Korea, where soybeans will be a central topic. Bessent predicted a "big breakthrough" in what will be the fifth round of high-level trade negotiations, saying, "We can start talking about things, including ag purchases."

The administration has grown increasingly vocal about China's failure to meet its commitments under the Phase One trade agreement, signed in 2020. China had pledged to buy $80 billion in U.S. agricultural goods over two years but ended up purchasing only $61 billion, according to U.S. officials. That shortfall remains a sore point in ag policy circles, with Senator Chuck Grassley confirming this week that U.S. Ambassador to China David Perdue brought up the issue during closed-door briefings with Republican senators.

Rollins, speaking separately on Fox Business, echoed Bessent's frustration and affirmed that Trump "is unwilling to let any of this slide." The White House's hardline stance reflects a broader strategy of positioning Trump as a defender of the U.S. farm economy, especially as rural communities continue to suffer from low commodity prices, input cost inflation, and foreign market instability.

Bessent also addressed criticism surrounding the administration's decision to offer economic assistance to Argentina, which China has increasingly turned to for soybean imports. He stressed that the support comes in the form of a swap line, not direct funding, and is meant to preserve financial stability in the Western Hemisphere.

"Just to be clear, we are giving them a swap line. We are not putting money into Argentina," Bessent clarified. Swap lines allow foreign central banks to exchange local currency for U.S. dollars, ensuring liquidity during times of financial stress. "You don't want to create another failed state," he added, hinting at the geopolitical implications of abandoning regional allies in the face of Chinese influence.

The evolving situation has left soybean farmers on edge, many of whom backed Trump in both the 2020 and 2024 elections. Bessent concluded with a message of solidarity: "Soybean farmers have had President Trump's back - and we've got their back."

With the announcement due Tuesday and trade talks with China on the horizon, the next few weeks could prove critical for U.S. agriculture. The administration is betting that financial relief today can deliver diplomatic traction tomorrow, while ensuring farmers don't fall behind before the 2026 planting season begins.