US-China Trade War: Why Farmers Are Getting Nervous and What the Trump Admin. Plans to Do About It

MOUNT JACKSON, Va. – China's threat of tariffs on American farm products in retaliation for the president's tariffs on Chinese steel and aluminum has some farmers feeling uneasy as they prepare for growing season. But Agriculture Secretary Sonny Perdue says he's working on a plan to bail them out if China follows through.

Brett Wightman farms in the Shenandoah Valley of Virginia raising beef cattle, corn, and soybeans.

He says it's always alarming when agriculture products are mentioned in trade disputes.

"Soybeans are the most concerning just because of the volume of consumption that China has. They are the largest consumer of soybeans in the world and we are the largest producer of soybeans in the world," Wightman told CBN News.

China is threatening tariffs as high as 25 percent on more than 100 American products, including everything Wightman raises, along with wheat, cotton, and cranberries.

The threat of tariffs and fears of a trade war come at a critical time for farmers as they prepare to plant their crops and adds a layer of uncertainty to an industry that could do without it.

"Commodity prices have dropped by over 40 percent; net farm incomes have dropped by over 50 percent," Wightman said.

US agriculture depends on trade, which accounts for 20 percent of farm profits.

Of the $140 billion in agriculture exports last year, China was America's biggest customer.

Secretary Perdue tells CBN News China's tariff threats are a "big deal," but said, farmers, he's talked to appreciate President Donald Trump's willingness to stand up for them.

"They're patriots. They understand China had to be called out for cheating. They understand they're vulnerable, but they also believe the president is going to take care of them," he said.

The president has authorized Perdue to use all the powers at his disposal to come up with a package to help farmers if China's threats affect their bottom lines.

"We're working on a package here and there are authorities within the secretariat of USDA in order to utilize programs and funds that would support farmers if they are harmed and damaged by trade disputes," Perdue explained.

Beijing already signaled it's willing to deal when Chinese officials reduced tariffs on imported cars and improved protection of intellectual property.

Secretary Perdue is hopeful his aid package will never have to be opened.

"They'd rather have a fair price for a good crop than any government payment," Perdue continued.

Brett Wightman also sells crop insurance to farmers in Virginia, West Virginia and Maryland. He says Among his customers there's one unifying principle.

"We are in favor of free trade. The American producer is incredibly good at producing corn and soybeans and if there's demand out there we typically meet and exceed it almost to our own demise so we want to keep that demand up and eliminate anything that might inhibit our products from going anywhere in the world where people might need them."