Copyright Arkansas Online
President Trump calls China's abrupt refusal to buy American soybeans an "economically hostile act." He's right. It's market warfare. Zeroing in on a smart negotiation tool, President Trump stated on Truth Social, "We are considering terminating business with China having to do with Cooking Oil." It's clear to experienced soybean farmers like my husband that President Trump was talking about Used Cooking Oil (UCO), not canola oil. It's also clear to those of us in agriculture that he wasn't just talking tough; he was applying a smart and strategic negotiation tool while identifying one of the most overlooked opportunities for American energy independence, agricultural strength, and environmental responsibility. Across the nation, farmers are struggling. For example, in Arkansas, Chapter 12 farm bankruptcy filings in Q1 of 2025 exceeded the total for all of 2024. Rising input costs, falling commodity prices, adverse weather, and trade disruptions have pushed many farms to the brink. The cause of the current crisis is no mystery. For decades, American soybean farmers had a reliable buyer in China. In 2009, Beijing began building infrastructure in Brazil. In 2024, China completed construction of a deepwater port in Peru, and railroads and highways over the Andes, locking in a supply chain designed to snub American commodities. This long-term play has steadily leveraged weak U.S. trade positions to hurt us. America's goal isn't to walk away from the table. We should absolutely sell to China--but on America's terms, not theirs. Our farmers deserve to compete from a position of strength, and not be sacrificed every time Communist China wants to play politics. Building a stronger domestic market allows America to sell to China on our own terms, not out of necessity, and not at Beijing's whim. Under the Biden administration, the U.S. shifted from being a net exporter to a major importer of UCO, going from around 450 million metric tons exported in 2021 to 1.4 billion metric tons imported in 2023. China accounted for about 0.1 percent of that volume in 2022 but 58 percent by 2024. China dominates our renewable fuel supply chain while America's farmers struggle. That makes no sense. One bushel of soybeans yields about 1.4 gallons of biodiesel--a clean, renewable fuel that already powers trucks and tractors across America. Replacing foreign UCO with American soybean oil builds a stable market that supports farmers, fuels our economy, and advances energy independence. It's worth mentioning that FutureFuel in Batesville is one of the largest biodiesel producers in the nation--proof that Arkansas has the capacity and know-how to help drive this transformation. Every gallon of soy-based biodiesel keeps jobs, dollars, and energy here in the United States. That's downright patriotic. If we supplement foreign used cooking oil with American soybean oil, we can build a stable homegrown market that supports our farmers, so that when China buys our soybeans, it strengthens America, not weakens our hand. It would offer long-term relief for American farmers by creating lasting demand for domestically sourced foodstuffs. We don't need to re-invent the wheel. We've seen this model succeed before. When U.S. corn farmers struggled under global price swings, we built the ethanol industry. Linking agriculture to energy stabilized prices and created a reliable domestic market that revitalized rural America. Today, nearly 37 percent of the corn crop goes into ethanol and other products, supporting communities, lowering emissions, and strengthening energy security. Corn production has increased significantly since. The approach that made ethanol an American energy giant can make soy-based biodiesel the next great success story, but only if we have the courage to unleash American capacity. Federal policy can accelerate this transformation. Expanding Renewable Fuel Standard credits, extending tax incentives for biodiesel, and adjusting blend rates of renewable fuels would create the demand necessary for long-term market stability. States can do their part by encouraging investment in biodiesel plants and infrastructure that bring new jobs to farm communities. The environmental benefits are strong. Soybeans capture carbon while growing, and soy-based biodiesel reduces greenhouse gas emissions by up to 76 percent compared to traditional diesel. This is a clean, renewable, American-made solution that supports our economy and our environment. Cutting off Chinese UCOs isn't pure retaliation; it's restoration. It restores strength to America in global trade, stability to rural populations, and dignity to the families who have fed and fueled this nation for generations. President Trump's proposal to put America First in agricultural trade is essential to our prosperity. By replacing foreign UCOs with American soybeans, we can power our future with homegrown fuel, strengthen our economy, and ensure that American farmers--not the Chinese Communist Party--control America's energy destiny. The President is right: The time to act is now. Leslie Rutledge is the lieutenant governor of Arkansas.
