China Tariffs Could Cost Farmers Millions
U.S. soybean prices have fallen about 12% since March
Perhaps Iowa farmers’ biggest fear is becoming a harsh reality: the escalating U.S.-China trade dispute erupted Friday, with each country vowing to levy 25% tariffs on $50 billion in goods, reports WQAD.
Iowa farmers could lose up to $624 million, depending on how long the tariffs are in place and the speed producers can find new markets for their soybeans, says Chad Hart, an Iowa State University economist.
Iowa is the nation’s second-largest soybean grower, producing 562 million bushels last year worth $5.2 billion.
In a similar report, ABC 22 Now says South Charleston, OH, soybean farmer and owner of Harbage Farms Brain Harbage is worried about the tariff because it will force the price of soybeans to go down.
“The value of the soybean is at the cost of production, so we can be losing money growing soybeans,” he says.
One in every three rows of soybeans that are planted in Ohio are exported to China.
Finally, the Montana Standard reports that wheat farmers in Montana are also worried about becoming a casualty of President Donald Trump’s trade war with China.
First, tariffs will increase the price Chinese buyers pay for Montana wheat, observers said. Second, U.S. prices are likely to dip as corn and soybeans take a hit.