Soybeans are Ohio's top crop when it comes to agricultural exports, but as the U.S. and China continue proposing retaliatory tariffs, our farmers could start feeling the effects.
Just six months ago, New Bremen farmer Jerry Bambauer was harvesting soybeans from his field, about one-third of which are in the process of going to China right now. But soon Ohio soybean farmers could be feeling the effects of recent tariff developments.
It started as an effort to maintain the intellectual property rights for the American tech industry, but as the list of proposed tariffs between the U.S. and China grows longer people in other industries are growing nervous.
Soybeans have become one of the latest targets, and that could mean bad news for Ohio farmers.
"It's our largest cash cop as far as dollars and cents in the state and, yes, as we move we are very, very export dominated," says Bambauer. "It's a crucial part of all the soybean industry."
Bambauer with the Ohio Soybean Association says many farmers may not be able to afford the proposed 25% tariff on U.S. soybean exports and there is concern that a trade war could hurt business.
But the director of the National Economic Council, Lawrence Kudlow, made it very clear that at this point there is only trade, no war. Tariffs have only been proposed and the way he sees it, it will only help the economy.
"This is being done in the name of growing the American economy at a much faster rate than in previous decades," says Kudlow. "It's part of the whole package of lower taxation and regulations."
But for some people in the agricultural community, like Bambauer, who will be directly affected should the tariffs be approved it is hard to see how the current back and forth is helpful to anyone.
"I don't know who it helps," says Bambauer. "It's not only gonna hurt the American farmer but it's also going to really be a concern for our consumers, our suppliers, the agricultural seed dealers, the financial people. The situation we're in, to me, looks harmful to both sides."
Bambauer believes there has to be another way to tackle China's practices on intellectual property other than through tariffs on other industries.
