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Why US farmers are concerned about China's economy
Last year, Iowa exported nearly a billion dollars in products to China; Soybeans made up $240 million. Farmers in Iowa put it in different terms: one of every four rows of soybeans goes to the Chinese. But there are growing signs of trouble.
China's economic slowdown already has hit Wall Street. On the presidential campaign trail Donald Trump warns about the threat from China every chance he gets. And no one is watching more closely than the farmer in Iowa.
"If China really slows down here we will see crop prices decline even further and that will mean some economic tough times here for the agriculture sector in Iowa and across the nation," said economist Chad Hart, a professor at Iowa State University.
That outcome could have devastating consequences.
"It's almost unimaginable," said Ron Heck. "If you suddenly lose a quarter of your market, what do you do? There's no other China on the planet where you could sell the surplus. No one can eat that much."
One thing going in Iowa's favor: China buys U.S. soybeans for a fraction of the cost of growing their own. Farmers give Trump credit for raising concerns about China, but they say the economic relationship has to continue.
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