Ohio farmers dealing with the impact after China turns its back on U.S. soybeans in ongoing tariff war
MANTUA, Ohio — Talk to Northeast Ohio farmers, like Portage County’s Chuck Sayre, and you’ll learn that there are two W’s over which they have no control: weather and Washington.
“We got a little dry in August, but weather wise we’re still pretty good,” Sayre said of the farming.
As for the latter?
“In the mood I’m in right now, and how we see things? I’m glad the government’s shut down, I wish they would get out of the way,” said Sayre
It’s a frustration born out of a trade war with China, America’s biggest buyer of soybeans, that began in 2018 when farmers like Sayre felt the initial hit, telling News 5 at the time how, from 2013 to 2018, their income was down over 50%.
Although China cut back, they were still buying American soybeans, but in this latest trade war, the Chinese market has essentially been shut down.
“China has stopped purchases of soybeans,” said Gbenga Ajilore, Chief Economist with the non-partisan Center on Budget and Policy Priorities. “This is a huge impact for our farmers because this is the biggest export economy for a lot of farmers throughout the Midwest, especially in Ohio.”
That’s driven down the price of soybeans, which means for farmers like Sayre, a loss on every seed that was planted this year.
“Every acre of soybean we grow this year, right now we’re losing $300 per acre, so over our little thousand-acre farm of soybeans, that’s $300,000 worth of loss,” Sayre said.
He’s not alone, says the Ohio Soybean Association, as farmers’ input costs for things like seed, fertilizer, fuel and equipment continue to shoot up while crop prices do not.
“It’s a big concern that farmers are producing a crop that [is] going to cost more to make than it is the revenue that they’d receive,” said Ohio Soybean Association Executive Director Kirk Merritt.
That’s why Sayre, who supported the tariffs at first, said he’s imploring Washington to do something to break this logjam by moving forward or back.
“They are either not strong enough or they’re just not working, I’m not sure,” he said.
The Ohio Soybean Association is also urging the Trump Administration to strike a deal with China, which typically buys 25%-30% of U.S. soybeans.
“We are advocating for the negotiation of a trade deal with China that brings them back into the market for U.S. soybeans, that would be extremely helpful,” said Merritt. “If we’re not able to bring China back into the market soon, then farmers are going to be in a position where to be able to pay their bills they’re going to need some assistance.”
Those who study the farm economy say that the administration needs to strike a deal with China or create new markets by coming up with a new use.
“If we’re able to create say new markets or maybe more local markets supposedly or maybe, there’s a program at USDA where I used to work at, the Value Added Producer grant program, is there something where soybeans can be used in something else and create this new market to replace what’s being lost in the export economy,” said Ajilore.
Because year after year of this Sayre says, is not sustainable.
“I’m trying to turn the farm over to my daughters like my dad turned it over to me— what’s to turn over? You know if there’s no profit, if there’s no market, if the foreign governments going to go somewhere else,” Sayre said. “Frankly, and this is a really hard decision, do we just sell the farm? Because if it’s not profitable why do you keep doing it?”