China tariff could have devastating impacts on Mississippi soybe - MSNewsNow.com - Jackson, MS

China tariff could have devastating impacts on Mississippi soybean farmers

President Trump announces tariffs on $50 billion of Chinese goods Friday, but China viewed that as the start of a trade war. Source: WLBT President Trump announces tariffs on $50 billion of Chinese goods Friday, but China viewed that as the start of a trade war. Source: WLBT
The country now plans to impose equal tariffs on American goods. Source: WLBT The country now plans to impose equal tariffs on American goods. Source: WLBT
China is the number one destination for U.S. soybean exports. Source: WLBT China is the number one destination for U.S. soybean exports. Source: WLBT
For now, Murphy remains hopeful that the soybean industry won't take as hard of a hit as it seems they might. Source: WLBT For now, Murphy remains hopeful that the soybean industry won't take as hard of a hit as it seems they might. Source: WLBT
JACKSON, MS (Mississippi News Now) -

President Trump announces tariffs on $50 billion of Chinese goods Friday, but China viewed that as the start of a trade war. The country now plans to impose equal tariffs on American goods.

China relies heavily on American farmers to get its supply of soybeans. Because of that, soybeans are big business here.

Danny Murphy farms soybean and corn in Canton. They've planted this year, but harvest on the soybeans won't come till late August or early September.

"Price for soybeans and corn have probably dropped about close to 10 percent in the last two weeks," noted Murphy.

That's partly due to the uncertainty surrounding talk of the trade war. China is the number one destination for U.S. soybean exports.

"It's a market that U.S. soybean farmers have worked over 40 years to develop and grow,” said Murphy. “It's really disappointing and frightening really that we might lose a lot of that market to Brazil and Argentina."

A snapshot of the state's agriculture industry shows, more than 3,000 Mississippi soybean farms produced over 100 million bushels last year. A big chunk of those are exported.

"I think most farmers realize how critical exports are to our livelihood," added Murphy. 

Farmers like Murphy aren't completely blind-sided by the Chinese threatening equal tariffs on American goods, but he is concerned about what this could mean in the long run.

"History has shown, whether it was the Carter embargo on soybeans or on ag products to Russia, that once you destroy a market, it takes years and years to get it back," Murphy said.

For now, Murphy remains hopeful that the soybean industry won't take as hard of a hit as it seems they might.

"It's kind of been a yo-yo effect on farmers and probably all exporters," added Murphy.

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