PEMBERVILLE, OH (WTOL) - Soy beans and corn are the two major crops in northwest Ohio and southeast Michigan. But now, China has made a threat to put tariff's on soybeans.
Like any other morning, Roger Burtchin wakes up and checks the soy bean commodities. It was a surprise to him to see the news of China's threat to put tariffs on U.S. produced soy beans.
Burtchin has more than 30 decades experience in farming soybeans and corn in Pemberville. He says China buys a quarter of the soybeans produced in the U.S.
Wednesday morning he saw the price of soybean down as a result of China's announcement.
Burtchin says he runs most of his beans off of selling contracts outlining how many of bushels he'll produce and at a certain price before the farming season starts.
The announcement has him concerned.
"They need our soybeans and we need them as a customer," Burtchin explained. "Now I think a lot of this is a lot of political gamesmanship between now and when they start buying again."
But for farmers in our area like Burtchin, he says the speculators who buy into grain futures tend to cause the raising of the price of grains, like soybeans.
He also says that on Wednesday he saw the price of soybeans down more than 40 cents per bushel after this announcement and that this will remain a waiting game in an already risky business.