The American Soybean Association President says retaliation by China against U.S. tariffs would undercut prices received by soybean farmers, and further hurt a depressed farm economy.
Testifying to lawmakers Thursday, ASA President John Heisdorffer asked members of Congress to help soybean farmers “be part of the solution,” rather than “collateral damage.” Heisdorffer, an Iowa farmer, highlighted the importance of maintaining China as a robust market for U.S. soybean exports, and the lasting effects implemented tariffs and a trade war would have on soybean farmers.
Farm income has fallen by 40 percent since 2013, and Heisdorffer says “farmers cannot absorb additional hits to the farm economy.”
In 2017, China imported 1.4 billion bushels of U.S. soybeans, 62 percent of total U.S. exports and nearly one-third of U.S. annual soy production.
According to a study conducted by Purdue University, soybean exports to China could drop dramatically if China chooses to impose a 25 percent tariff on U.S. soybeans.