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2018 trade disruptions lost Iowa gross state product up to $2 billion

While it might be some time before the direct impacts of the trade war with China has affected Iowa’s economy, a group of eight economists and agriculture development experts at Iowa State University attempted to make exactly those projections this past September. “The Impact of the 2018 Trade Disruptions on the Iowa Economy,” published by ISU’s Center for Agricultural and Rural Development, looked at the lead up to the ongoing tariffs and counter-tariffs between the United and China, and estimated some of the near-term impacts for Iowa for the year 2018.Among their findings:• Overall losses in Iowa’s gross state product are calculated to be $1 billion to $2 billion, off a GSP of $190 billion.• Overall losses to the state’s soybean industry of $159 million to $891 million. Iowa soybeans are a $5.2 billion industry, according to the researchers.• Overall losses to Iowa’s corn industry of $90 million to $579 million. Iowa corn is an $8.5 billion industry.• Overall losses to the state’s pork/hog industry of $558 million to $955 million. The Iowa pork/hog industry is a $7.1 billion industry.• A 2 percent drop in ethanol prices, resulting in approximately $105 million in lost revenues to Iowa producers.

 

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The Gazette