Illinois soybean industry faces crisis; Lawmaker calls for change
ILLINOIS (WCIA) - President Donald Trump and cabinet members discussed plans to help U.S. soybean farmers amidst a trade war with China. It happened the same day an Illinois lawmaker sent a letter to the USDA demanding action.
WCIA previously reported that Illinois soybean farmers haven't sold a single bean to China this year. In 2017, 62% of their soybeans were sold to China. Now, China is looking to South American countries like Brazil for their soybean needs.
The American Soybean Association says China has a 34% tariff on U.S. soybeans.
"Even if you pulled back the tariffs tomorrow, I don't think China is going to resume buying soybeans or other products any time soon. So I don't really know if there is much to be done to really save this situation," said William Ridley, an associate professor with the Department of Agricultural and Consumer Economics at UIUC.
Researchers also highlight other factors influencing agricultural production and exports, including cuts to public funding for university research.
U.S. Congressman and Senate candidate Raja Krishnamoorthi is urging the USDA to expand its focus beyond China and open up new trade channels in Southeast Asia, Africa and the Middle East.
"In the meantime, let's hedge against what's happening right now by selling into other markets. Unfortunately, the Trump Administration is not doing the work of kind of making sure these markets are able to absorb our soybeans," Rep. Krishnamoorthi said.
CBS reports the Trump Administration is considering a significant financial aid package for farmers. The package could include more than $10 billion in relief.
