WEST LAFAYETTE, Ind. — A Purdue University agricultural economist agrees with a majority of lawmakers in Washington that a $12 billion bailout plan put forth by the White House, does nothing to solve the economic strain American farmers will face as the U.S and China engage in a trade war.
“It’s large enough to have a substantial impact on farm incomes in a year when farm incomes are already distressed, but it doesn’t do a thing for the long term,” said Wally Tyner to Inside Indiana Business. “We predict the US will lose 29-percent of our global soybean market if these tariffs stay in affect.”
The Trump Administration placed tariffs on certain Chinese exports to the US a few months ago. China immediately responded with tariffs of it’s own, especially on soybeans. Indiana is the 4th largest producer of soybeans in the United States, according to a 2013 survey.
“The interesting thing to me is that (with these tariffs) the US’s economic well-being goes down, but the economic well-being of China goes down as well,” Tyner adds. “It’s a lose-lose situation for both countries.”
Tyner says the winner in all this is Brazil. He predicts that with China’s tariffs on American soybeans, the market will shift in favor toward Brazilian soybeans.
“Brazil, in the long term, would grow more soybeans, they would capture more of our soybean global market,” said Tyner. “Our soybean production falls 13-percent, their soybean production increases.”
Tyner calls the bailout package offered to American soybean farmers a “clearly political” move by the White House.
(PHOTO: Greg Baker/Getty Images)
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