Farm Progress

More than 60% of the state’s soy production is exported to China.

June 18, 2018

1 Min Read
FINANCIAL HIT: A study by Ohio State University found the proposed tariffs could decrease a farm’s net worth by an estimated 6% and annual net income by 59% over a six-year period.gracieross/Getty Images

With new research demonstrating the harmful impact of a trade war, the Ohio Soybean Association (OSA) recently expressed renewed concern over the potential result of the Trump administration’s plan to apply a 25% tariff on select Chinese imports. China has stated previously that if the tariffs on nearly $50 billion in Chinese goods go into effect, it will impose a retaliatory 25% tariff on U.S. goods, including soybeans.

A study by Ohio State University found the proposed tariffs could decrease a farm’s net worth by an estimated 6% and annual net income by 59% over a six-year period.

According to a separate study conducted by Purdue University, total U.S. soybean production could decline by 15%.

"These studies illustrate the massive harm that these tariffs could impose on rural America," says Allen Armstrong, OSA president and Clark County soybean farmer. "While there are legitimate trade issues with China, we cannot resolve them at the expense of our largest agricultural export, soybeans. This not only hurts farmers, it hurts all of Ohio."

Ohio is the sixth-largest producer of soybeans in the U.S., with 4.8 million acres planted in 2017 and more than 60% of the state’s entire soybean production exported to international markets. China imported $13.9 billion in U.S. soybeans in 2017, 60% of total U.S. soy exports.

While the looming threat of tariffs is already creating uncertainty in the marketplace, OSA and its national affiliate, the American Soybean Association, continue to ask the administration to find ways to avoid a trade war that will leave U.S. farmers vulnerable during a time when they are already experiencing declines in farm income.

"We want to see this resolved so we can continue to compete in the global marketplace," Armstrong says.

Source: OSA

Subscribe to receive top agriculture news
Be informed daily with these free e-newsletters

You May Also Like