Farmers concerned about how trade war will affect profits - Hometownstations.com-WLIO- Lima, OH News Weather Sports

Farmers concerned about how trade war will affect profits

Posted:
Soybeans are among the agricultural products that will see at 25% tariff penalty in the latest escalation of the trade war between the United States and China. Soybeans are among the agricultural products that will see at 25% tariff penalty in the latest escalation of the trade war between the United States and China.
The Ohio Soybean Association sent out a press release Friday afternoon yet again condemning the tariffs, saying it will make the US less competitive in the global market and that soybeans farmers will likely see the negative effects in their income. The Ohio Soybean Association sent out a press release Friday afternoon yet again condemning the tariffs, saying it will make the US less competitive in the global market and that soybeans farmers will likely see the negative effects in their income.

President Donald Trump's tariffs on $34 billion of Chinese products officially went into effect on Friday and China has responded by imposing their own tariffs on over 500 American products, including Ohio's second largest export soybeans.

Soybeans are among the agricultural products that will see at 25% tariff penalty in the latest escalation of the trade war between the United States and China. While some are concerned about how the move will impact the agricultural industry in the states, economist Robert Scott says that in the grand scheme of the country's economy the tariffs will not harm all that much.

"Essentially, tariffs of 10-25% on, perhaps, $50-100 billion worth of imports, that's a tiny fraction of the overall economy," says Scott. "They'll be a lot of individual disruptions, a lot of workers laid off, but in an economy that's gaining 200-250,000 jobs a month it'll be lost in the overall growth."

But for soybean farmers, tariffs are something to be concerned about. Jackson Township farmer Jim Hefner says in the months since the tariffs were announced soybean prices have dropped about $100 per acre overall, although prices did improve a bit on the day the tariffs were actually imposed.

While right now it is looking like it will be a tight year for profits, Hefner says farmers are used to not being able to control their circumstances and he just hopes the president knows what he's doing.

"I don't know that I'm that optimistic yet, I don't know if they can turn things around that quick for this year," says Hefner. "I mean, 25% drop in the price already is going to be hard to recover. I hope the president, being a businessman at heart, knows what he's doing and it'll turn out okay in the end."

The Ohio Soybean Association sent out a press release Friday afternoon yet again condemning the tariffs, saying it will make the US less competitive in the global market and that soybeans farmers will likely see the negative effects in their income.

/
Loading...