Gov. Sarah Sanders announced Friday (Sept. 19) the signing of two Letters of Intent (LOIs) with Taiwan’s leading agricultural associations, signaling a combined commitment of at least $5.56 billion in purchases of Arkansas and U.S. agricultural products between 2026 and 2029.
The Taiwan Feed Industry Association intends to purchase 7.5 million metric tons of corn and 1 million metric tons of corn products, valued at approximately $2.12 billion.
Additionally, the Taiwan Vegetable Oil Manufacturers Association has committed to purchasing at least 6.5 metric tons of soybeans, with an estimated value of at least $3.44 billion. Final terms, prices, and conditions will be negotiated directly between the individual importers and U.S. suppliers.
“Today’s announcement is great news for Arkansas and especially our row crop farmers, who need all the assistance they can get right now,” Sanders said. “I’m incredibly grateful to Secretary (of Agriculture Wes) Ward, the entire Arkansas Department of Agriculture team, and our Taiwanese partners for collaborating on this multibillion-dollar investment. All around the world, Arkansas is being recognized for the agricultural powerhouse that it is.”
“Today’s letter of intent signing for corn and soybeans signals the strong relationship that we have with Taiwan, which is currently the fifth largest agricultural trading partner for Arkansas and the eighth largest agricultural trading partner for the United States,” said Ward. “We are proud of the work by Gov. Sanders and (U.S) Secretary (of Agriculture Brooke) Rollins to continue to build mutually beneficial relationships with trading partners during a critical time for our row crop producers.”
Ward will be a guest on this weekend’s TV editions of “Talk Business & Politics” and “Capitol View” to discuss this deal and other concerns regarding Arkansas farmers.
In 2024, Taiwan imported nearly $3.7 billion in U.S. agricultural products, making it the eighth largest U.S. market. Arkansas exported approximately $63.2 million to Taiwan that year, its fifth largest export market.
The LOIs align with ongoing U.S.-Taiwan trade initiatives, including the Taiwan-U.S. Economic Prosperity Partnership Dialogue and other bilateral mechanisms aimed at strengthening economic cooperation and market access for agricultural products.
During a recent visit to Arkansas, representatives from Taiwan attended tours of Bruce Oakley Inc., a diverse commodity, distribution, and transportation company based in North Little Rock, and Bearskin Farm in Lonoke County.
They also participated in discussions with stakeholders at the Arkansas Department of Agriculture and met with representatives from the University of Arkansas System Division of Agriculture.
The agri trade deal with Taiwan will not fully make up for lost sales to China. Higher tariffs placed on China by President Donald Trump resulted in that country halting soybean purchases. U.S. farmers shipped almost $13 billion in soybeans to China in 2024, according to the U.S. Department of Agriculture. But for the 2025-2026 crop year, China has placed no orders for U.S. soybeans. Arkansas is tops among southern states for soybean production, and 10th nationwide, according to the Arkansas Farm Bureau.
Rising commodity prices, lack of updated federal farm policies, and the loss of key markets resulting from tariff policies have placed the Arkansas agri community on the verge of disaster[1], according to Arkansas agri officials.
“There is a true disaster looming on the horizon,” according to Andrew Grobmyer, executive director of the Agricultural Council of Arkansas, a group representing a vast diversity of farmers and those who support the industry.
One in three or more farms in Arkansas could be shuttered by next spring if the federal government doesn’t provide some type of supplemental assistance to farmers this fall, said Joe Mencer, president of the Agricultural Council of Arkansas.
Related
References
- ^ verge of disaster (talkbusiness.net)