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And in Ohio…Contemplating 25% Tariffs on Soybeans

Summary:
From Brown, Sheldon,AEDE Agricultural Report 2018-001, May 2018: Through calculations made based on a representative west central Ohio farm, and assuming an average degree of Chinese substitution between U.S. and Brazilian soybean import, it is estimated that average net income per year (2018-2024) would drop from ,577 to ,107 under the proposed tariff, which translates to a 59% decrease in net farm income. The US tariffs on steel and Chinese retaliation induces this effect through “higher machinery costs, lower corn, soybean and pork prices for U.S. agricultural producers”.

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From Brown, Sheldon,AEDE Agricultural Report 2018-001, May 2018:

Through calculations made based on a representative west central Ohio farm, and assuming an average degree of Chinese substitution between U.S. and Brazilian soybean import, it is estimated that average net income per year (2018-2024) would drop from $63,577 to $26,107 under the proposed tariff, which translates to a 59% decrease in net farm income.

The US tariffs on steel and Chinese retaliation induces this effect through “higher machinery costs, lower corn, soybean and pork prices for U.S. agricultural producers”.

Menzie Chinn
He is Professor of Public Affairs and Economics at the University of Wisconsin, Madison

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