Economic Impacts to Tennessee Soybean Producers and Regional Economies from China's 25 Percent Tariff on Soybeans

S. Aaron Smith, Robert Menard and Burton English

No 302952, Extension Reports from University of Tennessee, Department of Agricultural and Resource Economics

Abstract: Agricultural producers face numerous production and price uncertainties. International trade disruptions can exacerbate issues for producers. In 2018, as a result of escalating trade tensions between the U.S. and China, both countries imposed tariffs on various imports. China’s tariffs have largely focused on U.S. agricultural commodities and products, specifically soybeans, creating an uncertain marketing environment that affects soybean producers’ income expectations for 2018. Due to tariffs on soybeans, the Trump administration announced payments to producers through the Market Facilitation Program (MFP) (Best, Smith and Muhammad, 2018). Soybean MFP payments are designed to partially offset decreases in soybean producer income as a result of the Chinese tariffs. This article estimates the economic impact of decreased soybean prices, due to tariffs, and soybean MFP payments on 2018 soybean producer income and regional economies in Tennessee.

Keywords: Crop Production/Industries; International Relations/Trade; Marketing; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 9
Date: 2018-09-03
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/302952/files/W782_FINAL.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:utaeer:302952

DOI: 10.22004/ag.econ.302952

Access Statistics for this paper

More papers in Extension Reports from University of Tennessee, Department of Agricultural and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().