And in Ohio…Contemplating 25% Tariffs on Soybeans

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”.

5 thoughts on “And in Ohio…Contemplating 25% Tariffs on Soybeans

  1. Moses Herzog

    Rumor has it that Ohio is important during Presidential Elections. But then, so was West Virginia in 2016, so take it for whatever it’s worth.

    OK, not terribly insightful there, but my consulting fees received from this blog are very minimal. I’ll try harder next time, I promise.

    Thanks for the OSU paper Menzie!!!!

  2. pgl

    Interesting applications of economics but I fear that CoRev will accuse the authors of misapplying economics as the somehow know nothing about ag econ.

    1. baffling

      having lived in ohio for a while, i would say he is choosing steel workers over farmers. there are more folks in ohio who relate to the steel business (industry) than farming, and they tend to be a more vocal crowd as well. trump has shown the average voter responds to emotion rather than logic. i am afraid this means a decade of populism and resulting policies, which will end up hurting our potential for a generation.

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