Farmer Joe Christian is bracing for a major financial blow to his crops, and income. This comes as tariff wars heat up between the U.S., China, and other nations.
“Back earlier in the year, we had the chance to book a lot of our soybeans. In other words price our soybeans, for ten dollars a bushel. And that’s a decent price,” said Christian.
“Dropping two dollars a bushel in our soybean prices affect whether we make a profit or not.” “I can’t add costs to my commodities, I have to take what the cost is on the Chicago board of trade, or what the cash price is.”
Soybeans are currently trading for around $8.50 a bushel.
The fall of soybean prices has further repercussions on employment opportunities in Arkansas. Economists predict that the tariff wars, could cost the state as many as five thousand jobs. And devalue the state’s economy, by over four hundred and thirty million dollars.
Tensions over steel and aluminum tariffs are expected to drive up the price of farm equipment and further decrease net revenues for farmers.
“They’re taking an impact of anywhere between about one hundred and eighty dollars an acre, looking at about ninety dollars an acre.” “Soybean production has increased over forty percent in the past five years in the U.S. alone, so we’re needing these export markets,” said Christian.
Agriculture experts are awaiting a tariff agreement. Any further drops in soybean prices will be detrimental.