An Iowa State University study found that those new international tariffs could cost Iowa’s economy up to $2 billion.
“Is that a lot? Yeah, that is a big number, but I would have been more surprised if it said something like 10-20 percent,” said John Crespi of Iowa State University.
Crespi, an ISU professor and interim director of the Center for Agriculture and Rural Development said the study breaks down the potential hit by industry.
Ethanol producers could lose $105 million, the corn industry between $90 million and $579 million dollars and the hog industry facing losses of $558 million to $955 million. The soybean industry faces losing between $159 million and $891 million.
Kirk Leeds, the CEO of the Iowa Soybean Association said he’s not surprised by the findings.
He said the dollar and 60 cents a bushel pledged to soybean farmers by the government helps but does not come close to the bailout that would come from settling the trade war with China.
“The tariffs and counter-tariffs we are enduring in this trade war with and the U.S. is having a real impact on Iowa framers.”
Pat McGonegle, the CEO of the Iowa Pork Producers Association said that is exactly what his industry is asking for: a quick resolution.
“For the pig farmers, the producers, it certainly is a very difficult economic time, and we are looking at or asking for a quick resolve to these trade disputes and for sure to get Mexico, that market opened as quickly as possible.”
As the report was coming out, the authors of the study are aware of another round of possible tariffs against China. But also a strong dialog and movement in negotiations with Mexico.