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K-State economist says Argentina aid many not hurt U.S. farmers

An economist says the ag industry shouldn’t overreact to Argentina’s aid package.

Guy Allen, senior economist at the International Grains Program with Kansas State University says the assistance isn’t likely to have major impacts on U.S. producers. “It actually provides for a more orderly marketing situation. I would suggest for the long run, it probably helps the whole soybean complex for the U.S. farmer rather than be negative.”

On Thursday, Treasury Secretary Scott Bessent announced that the U.S. finalized a $20 billion currency swap with Argentina’s central bank to help stabilize the country’s financial situation.

The American Soybean Association has criticized the Trump administration for the aid package due to China’s purchases of Argentina’s exports. But, Allen tells Brownfield, “Argentina was going to sell soybeans and soybean products to China one way or the other.”

Last week China purchased 20 shiploads of soybeans when Argentina suspended export taxes. Allen says that’s normal, too. “When you have disorder and hyperinflation in a destabilized economy, there’s pretty much a rush to covert those commodities to currency. They do that through rapid exports.”

In a call with reporters recently, Nebraska Senator Pete Ricketts said he supports the bailout. “I do think it was bad form for them to turn around right after we had decided to help them out and sell soybeans to China, especially taking taxes off it to reduce the price further. I think that requires us to have conversations with our friends about what our expectations are when we’re helping them out.”

Bessent did not reveal details of the agreement in his social media post, but is meeting with Argentina’s leader on Tuesday in Washington D.C.

Guy Allen: