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Northey weighs in on Chinese slowdown during Durant stop

Durant, Iowa, is a long way from China’s economic slowdown on Tuesday. But Iowa’s Agriculture Secretary Bill Northey knows it’s still deliveri...

Durant, Iowa, is a long way from China's economic slowdown on Tuesday.

But Iowa's Agriculture Secretary Bill Northey knows it's still delivering a direct hit to the farm economy.

"When it hits our farmers here, then it hits our small towns and our big cities as well," he said.

With its 900 cattle, this farm participates in a fast-growing export market.

But China's troubles hurt everything from equipment sales to the state's soybean crops.

"It could really be a concern for us," said John Maxwell, Cinnamon Ridge Farms.  "We produce so much corn.  How do we get rid of it all?"

While China ranks fourth in Iowa exports, it's also a factor in plummeting prices.  That hurts the bottom line down on the farm.

"It has certainly affected the ag economy out here," Northey said.

All of this shows the value of the global economy.  When China hurts, they feel the pain in Iowa.

China's impact now totals about a billion dollars in Iowa.

But as it devalues currency to boost its economy, it's also a warning to Iowa farms.

"Exports are a huge deal for Iowa farmers and for the rest of Iowa because it's so important for agriculture," Northey said.

Secretary Northey praises the overall health of Iowa's farm economy, but he also recognizes that the Chinese situation will slow growth.

"We're going to struggle here a little bit if prices don't bounce up from where they're at," he concluded.

It's a look at the big picture from Cedar County.

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