Arkansas Farm Bureau president "concerned" with soybean prices because of Chinese tariffs
LITTLE ROCK, Ark. (KATV) —
Since China proposed tariffs on soybeans following president trump's announced tariffs on Chinese goods, the price of soybean bushels have dropped 20 percent.
For farmers in Arkansas, that's something that could mean the end of their business.
Arkansas Farm Bureau President Randy Veach says it's something he's keeping an eye on.
"We're concerned, of course," Veach said.
Being a soybean farmer himself, when he saw China was placing a tariff on United States soybeans, the market dropped the value of that crop to around nine dollars a bushel, putting Arkansas farmers in a difficult spot.
"They actually buy 60 percent of all the soybeans that's traded around the globe," Veach said. "We can't make a profit at that low of a price."
That's because a lot of this crop goes to places like China, Mexico and Canada, places that are currently in tariff and trade wars with the united states.
"One in every third row of soybeans in Arkansas is going overseas somewhere," Veach said.
With a drop in crop price, and a rise in input cost for things like diesel fuel and soil, Veach says he the outcome, could be disastrous for farmers in the natural state.
"Hopefully,” Veach said, “we can come to a reconciliation and these tariffs do not kick in."
Because if not, according to Veach, "we could lose some of our farmers just simply because of economics."
The markets have been bracing themselves for these tariffs, even though they won't officially take effect until July.