By Andi Anderson
Tariffs on global trade are causing concern for American businesses, especially farmers in agricultural states like Illinois. With crops like soybeans, corn, wheat, and pork heavily reliant on exports, trade restrictions are hitting farmers hard.
John Bartman, a farmer in McHenry County, grows soybeans mostly for China. He fears losing this market could lead to huge financial losses. “It’s a dramatic loss — 100% of it is exported,” he said.
Illinois ships $10.5 billion worth of agricultural goods overseas each year. Soybeans go mainly to China, corn to Mexico for cattle feed, and oilseeds to Canada for biofuel. However, with countries like China now imposing retaliatory tariffs, farmers face dropping prices and shrinking markets.
Economists explain that tariffs reduce foreign sales. When countries buy fewer U.S. products, farmers earn less. Professor Jonathan Coppess warned that a trade war could result in lost market share and falling incomes.
Soybean prices have already dropped from $14 to $10 a bushel and could fall further. Brian Duncan, president of the Illinois Farm Bureau, said farmers must sell to global markets as 95% of the world’s population lives outside the U.S.
However, adjusting quickly is difficult. Farmers plant months before policy changes, and domestic markets already have suppliers. Johari Cole, an organic farmer, said that oversupplied markets cannot absorb excess easily.
Some believe better domestic investment could help, but sudden shifts without support hurt farmers. Chinese tariffs are now at 10%, while U.S. tariffs are at 30%.
“We’ve tightened the belts, deferred some capital purchases and are doing anything we can to reduce our expenses and hope for a rapid resolution,” Duncan shared.
Farmers prefer earning from the marketplace, not government aid, but current trade policies make that difficult. As uncertainty continues, Illinois farmers wait and hope for stable trade solutions.
Photo Credit: istock-arthon-meekodong
Categories: Illinois, Business, Crops