A study conducted by the World Agricultural Economic and Environmental Services commissioned by the American Soybean Association and the National Corn Growers Association predicts dire consequences from imposing punitive tariffs on imports from China. The topic is currently front and center in the Presidential campaign.

Economists responsible for the report calculated that in the event of high tariffs imposed on China, exports to that nation would decline by 52 percent from baseline levels for soybeans and 84 percent for corn.  Brazil and Argentine have the capacity to compensate for the shift from the U.S. and it would not be possible to find new markets to offset the loss to China. A steep drop in exports would reduce prices to farmers resulting in negative outcomes for rural areas.

There are two sides to every coin.  Lower corn and soybean prices would be reflected in reduced costs of production for eggs and poultry meat, benefiting producers and integrators and if passed on to consumers would increase domestic consumption.