ROCKINGHAM COUNTY, N.C. (WGHP) — As tensions continue between the U.S. and China, local farmers in the Triad are feeling the pressure, with tariffs on soybeans severely affecting their livelihoods.
What Happened
For farmers like John Ashe, who has been growing soybeans for years, the ongoing trade war has caused a steep decline in the price of soybeans. While dry weather poses its own challenges for agriculture, Ashe believes the real financial blow has come from the retaliatory tariffs imposed by China.
“In the past, I was selling soybeans for $13.75 to $15 a bushel. Now, I’m lucky if I can get $9.50 to $10,” said Ashe, illustrating the dramatic price drop.
Soybeans are a major crop for U.S. farmers, with China historically being the largest buyer. The trade war, however, has resulted in China halting purchases of U.S. soybeans, largely due to a 20% tariff imposed by the Chinese government in retaliation for tariffs imposed by the U.S.
Impact on Farmers
The consequences of the tariffs have been disastrous for many soybean farmers, including Ashe. The U.S. Department of Agriculture reported that China purchased more than $12 billion worth of soybeans from the U.S. last year, making it the largest consumer of U.S. soybeans. However, in the current marketing year, the American Soybean Association revealed that the U.S. has made zero soybean sales to China.
Ashe, who has relied heavily on Chinese markets in the past, said that about 65-70% of his soybeans used to be sold to China. “They are just not interested in our product anymore,” Ashe remarked, voicing the frustration many farmers are feeling.
Strained Resources
While some farmers, like Ashe, were able to anticipate the economic impact of the tariffs and adjusted their production accordingly, many others are facing greater financial hardships. “We cut back on planting as much as we normally would. I didn’t want all my eggs in that basket,” said Ashe.
With ongoing uncertainty in trade relations, Ashe and other farmers will face difficult decisions in the coming months. “I’ll decide by November or December if I’m going to plant soybeans next year or not,” he said.
Looking Forward
The situation remains fluid as the trade war continues to evolve. Farmers are hoping for a resolution, but in the meantime, the economic toll on the agricultural sector is undeniable. For those in the soybean business, the next few months will determine how long they can continue in the face of declining revenue and trade uncertainties.
As the trade war progresses, many local farmers are wondering if things will improve or if the impact will last much longer, forcing them to reconsider their crop plans for the future.
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