Map shows how the U.S.-China trade dispute is hurting American farmers

American farmers are expected to traverse a rocky financial road in the coming months.

  • American farmers are seeing economic losses as a result from the U.S.-China trade dispute.
  • Farmers of soybeans, which is the most imported U.S. crop in China, have been hit especially hard.
  • All agricultural commodities are at risk.

American farmers are suffering economic losses from a U.S.-China trade dispute that shows no signs of slowing down.

On Monday, the Trump administration announced plans for the U.S. to impose a 10-percent tariff starting Sept. 24 on $200 billion worth of Chinese goods, increasing to 25 percent on Jan. 1. The Chinese government responded a day later by announcing new tariffs on U.S. goods worth $60 billion.

Losses across the country

A new map from the U.S. Department of Agriculture's Economic Research Service, which shows year-over-year changes in net cash farm income, illustrates how farmers in all regions of the U.S. are, in part, already losing money from the tit-for-tat retaliatory measures.

Each region of the country specializes in certain crops, for example:

  • Basin and Range: beef and wheat
  • Heartland: soybeans and corn
  • Northern Crescent: dairy
  • Northern Great Plains: wheat, corn, soybeans
  • Prairie Gateway: wheat, corn, soybeans
  • Fruitful Rim: fruits, citrus fruits, vegetables
  • Mississippi Portal: cotton, soybeans, corn
  • Southern Seaboard: cotton, peanuts, rice

"All of these commodity prices are linked together," Gary Schnitkey, Professor in Farm Management at the University of Illinois, told Yahoo Finance. "If soybean prices fall, so do corn and wheat."

American growers of soybean, which is the most-imported U.S. commodity in China, are expected to be hit hardest by the trade dispute. In 2017, China imported from the U.S. about 33 million tons of soybeans, which are used to feed livestock and make cooking oil. If China can find another source for its soybeans, such as Brazil, the U.S. could see economic losses in the billions.

"On the U.S. side, farmers will suffer the most from the imposition of Chinese tariffs on U.S. soybeans," Loren Puette, director of Taiwan-based research firm ChinaAg, told DW. "To have the Chinese market shut down for these farmers would be a major financial blow," Puette says.

Still, China would likely suffer in the transition, too.

"The annual loss in U.S. economic well-being would range between $1.7 billion and $3.3 billion," said Wally Tyner, an agricultural economist at Purdue University. "Chinese economic well-being also falls if they impose a tariff, in some cases as much or more than for the U.S. The reason for that is that soybean imports are very important to their domestic economy."

Some have suggested an additional reason why China is targeting soybeans: to turn soybean farmers, many of whom are based in red states, against President Donald Trump ahead of the midterm elections.

"With the midterm elections only a few months away, we would expect China to keep the pressure turned up," John LaForge, head of real asset strategy at the Wells Fargo Investments Institute, wrote in a note to clients. "But soon thereafter… we would expect to see some relief for U.S. soy prices and U.S. soy exporters."

'Upstreamism': Your zip code affects your health as much as genetics

Upstreamism advocate Rishi Manchanda calls us to understand health not as a "personal responsibility" but a "common good."

Sponsored by Northwell Health
  • Upstreamism tasks health care professionals to combat unhealthy social and cultural influences that exist outside — or upstream — of medical facilities.
  • Patients from low-income neighborhoods are most at risk of negative health impacts.
  • Thankfully, health care professionals are not alone. Upstreamism is increasingly part of our cultural consciousness.
Keep reading Show less

Elizabeth Warren's plan to forgive student loan debt could lead to an economic boom

A plan to forgive almost a trillion dollars in debt would solve the student loan debt crisis, but can it work?

Photo credit: Drew Angerer / Getty Images
Politics & Current Affairs
  • Sen. Elizabeth Warren has just proposed a bold education reform plan that would forgive billions in student debt.
  • The plan would forgive the debt held by more than 30 million Americans.
  • The debt forgiveness program is one part of a larger program to make higher education more accessible.
Keep reading Show less

Banned books: 10 of the most-challenged books in America

America isn't immune to attempts to remove books from libraries and schools, here are ten frequent targets and why you ought to go check them out.

Nazis burn books on a huge bonfire of 'anti-German' literature in the Opernplatz, Berlin. (Photo by Keystone/Getty Images)
Culture & Religion
  • Even in America, books are frequently challenged and removed from schools and public libraries.
  • Every year, the American Library Association puts on Banned Books Week to draw attention to this fact.
  • Some of the books they include on their list of most frequently challenged are some of the greatest, most beloved, and entertaining books there are.
Keep reading Show less

Supreme Court to hear 3 cases on LGBT workplace discrimination

In most states, LGBTQ Americans have no legal protections against discrimination in the workplace.

(Photo by Andres Pantoja/SOPA Images/LightRocket via Getty Images)
Politics & Current Affairs
  • The Supreme Court will decide whether the Civil Rights Act of 1964 also applies to gay and transgender people.
  • The court, which currently has a probable conservative majority, will likely decide on the cases in 2020.
  • Only 21 states and the District of Columbia have passed laws effectively extending the Civil Rights of 1964 to gay and transgender people.
Keep reading Show less