Ohio Soybean Association Expresses Disappointment and Concern with Chinese Tariffs
July 6, 2018 Ohio Soybean Association
The Ohio Soybean Association (OSA) today expressed disappointment and increasing concern regarding the implementation of a 25 percent tariff on Chinese products and the resulting retaliation by China on soybeans.
“We’re now looking at a 25 percent tariff on every single soybean that we try to sell to China,” said Kirk Merritt, OSC executive director. “This makes us less competitive in the global market and with 61% of all our current soybean exports going to China, it means that we’re likely to see negative effects on soybean prices and farmers’ incomes.”
According to a study by The Ohio State University, these tariffs could mean up to a 59 percent decrease in Ohio farmers’ net income in only six years. A study by Purdue University found that total U.S. soybean exports to China could drop by 65 percent and U.S. soybean production would decline by 15 percent.
The value of the Ohio soybean crop is approximately $2.5 billion. China is the top export market for U.S. soybeans, accounting for almost $14 billion in sales, representing nearly a third of total U.S. soybean production in 2017.
“This doesn’t only hurt Ohio farmers, it will hurt the entire Ohio economy,” said Allen Armstrong, OSA president and soybean farmer from Clark County. “We continue to believe that solutions can be found that do not involve tariffs and a trade war that will hurt all of rural America.”
OSA and its national affiliate, the American Soybean Association, will continue to voice its concerns and the negative impact this will cause U.S. farmers to the Administration and Congress.
“It’s not too late to rethink the tariffs and find a resolution that doesn’t create additional hardship for family farmers,” said Merritt. “We encourage Ohio farmers to let their voices be heard to their representatives on this issue.”