China has shifted its corn and soybean purchases from the United States to Brazil in what US officials say appears to be a retaliatory move against legislation restricting Chinese ownership of US farmland.
China's potentially politically motivated pivot to Brazil has signaled concern over U.S. corn exports for 2025, as the price of U.S. corn is falling.
In February, MarketWatch reported that U.S. corn prices have dropped by 8%. The market attributes the decrease in gasoline demand and choices made by the Environmental Protection Agency for the drop in corn prices. Market Watch noted that "disappointing" renewable energy mandates resulted in an oversupply and a corresponding price decline.
The Chinese Agriculture Minister raised concerns about a situation where a Chinese-owned seed company was forced to dispose of farmland in Arkansas. This retaliation has resulted in a significant decrease in US agricultural exports to China, prompting US Agriculture Secretary Tom Vilsack to urge American farmers to diversify their export markets.