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The Ohio Soybean Association (OSA) is again expressing concern with the recent decision by the Administration to continue moving forward with its plan to apply a 25 percent 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 percent tariff on U.S. goods, including soybeans.

A recent study by The Ohio State University examined the potential impact of these tariffs on Ohio farmers. Using a representative farm, researchers 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 would decline by 15%.

“These studies illustrate the massive impact that these tariffs could potentially have on rural America,” said Allen Armstrong, OSA president and Clark County soybean farmer. “We understand there are legitimate trade issues with China that need to be resolved, but we also don’t want to see our largest agricultural export, soybeans, get caught up in this in a negative way. 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 over 60% of the state’s entire soybean production was exported to international markets. China imported $13.9 billion in U.S. soybeans in 2017, 60 percent of total U.S. exports.

While the looming threat of tariffs is already creating uncertainty in the marketplace, OSA and its national affiliate, the American Soybean Association, continues to ask the Administration to work 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,” said Armstrong.

Trade negotiations begin with Chinese and U.S. representatives this week.