Bessent Divests Soybean Farmland Before Trump’s Aid Announcement

Treasury Secretary Scott Bessent announced the divestment of his holdings in North Dakota soybean farmland, coinciding with his strong support for U.S. farmers facing challenges due to trade tensions with China. Bessent’s decision comes as the agriculture sector grapples with the repercussions of tariffs imposed during Donald Trump‘s administration, which significantly affected soybean exports.

During an interview on the CBS program “Face the Nation” on December 3, 2023, Bessent revealed, “I actually just divested it this week as part of my ethics agreement, so I’m out of that business.” His investment in soybean farmland had raised concerns about potential conflicts of interest as he led negotiations with China regarding trade and tariffs.

As part of the ongoing trade war, China, which was once the largest buyer of American soybeans, increased tariffs on agricultural products in May 2023. This move resulted in a dramatic decline in soybean purchases from the U.S., putting many farmers in a precarious financial position. Bessent, a former hedge fund manager, previously expressed empathy for those affected, stating in an interview with ABC News, “I’m actually a soybean farmer. I have felt this pain too.”

On December 4, 2023, Bessent is expected to play a key role in announcing a new $12 billion farm aid package at the White House. The initiative aims to provide financial support to farmers struggling due to the trade dispute.

Bessent’s divestment was in accordance with an ethics agreement, which required him to relinquish his investment held through a family partnership. A filing with the U.S. Office of Government Ethics dated December 5 provided some context for his financial disclosures, although details remained limited.

The Treasury Department did not respond to a request for comment regarding Bessent’s divestment and its implications for his role in the administration’s agricultural policy.

As U.S. farmers continue to navigate the complexities of trade relations, Bessent’s actions highlight the intricate balance between government officials’ personal investments and their public responsibilities. The forthcoming aid announcement may offer some relief to those impacted by the ongoing trade conflict.