Farmers in the United States are bracing for headwinds in agricultural field as president-elect Donald Trump has vowed to drastically raise tariffs on China, one of the key trading partners of these food makers. Trump, who will take office on Jan 20, threatened to impose a 60 percent tariff on Chinese imports during his campaign. When the previous Trump administration imposed tariffs on Chinese imports, China responded with tariffs on a variety of U.S. goods, including agricultural products such as soybeans and corn, and American farmers are now preparing for a similar situation. On a cold winter's day in Wilton, in the U.S. state of Iowa, seventh generation farmer Dave Walton has begun grinding hay bales. The process aerates the hay and blows away dust and mold, making it easier for livestock to eat. As the year ends, Walton reflects on a difficult cycle in U.S. farming. "Agriculture is in a little bit of a tough spot right now. In the agricultural economy, it's already hit. You've seen layoffs from John Deere that are directly related to a lack of buying from farmers. We don't have money to spend, so we're not spending it on equipment," he said. Walton, like many farmers, is keeping a close eye on events in Washington, and the return of Donald Trump to the White House, as biggest concern for them is the potential return of a trade dispute between the U.S. and China. A U.S. Department of Agriculture study found the retaliatory tariffs reduced U.S. agricultural exports by 27 billion U.S. dollars from mid-2018 when the tariffs were imposed to the end of 2019. "A trade war would be devastating to agriculture. I mean, I don't really feel like we fully recovered from the last one. But I think there's a better understanding in Washington, D.C. of what the effects are when it happened the last time and so now they know what the potential is for damage to us if it happens again," said Walton. China remains the largest export market for U.S. farmers, but some officials in Iowa say the U.S. agriculture industry is in a better position this time round. "I think agriculture groups have recognized, especially soybean growers, that diversification and markets is something that we need to address. What's the diversification strategy and what are the markets can we fulfill," said Matt Herman, Chief Officer, Demand and Advocacy at Iowa Soybean Association. Back at the farm, Walton hopes that diversified trade, as well as the hope for continued trade relations with China, can boost farming in the coming years. "China has been a great trading partner with us. We need that trade, we need that trade with China, we need to trade around the world," he said. SHOTLIST: Wilton, Iowa, USA - Recent 1. Various agricultural machine being operated at farm; 2. SOUNDBITE (English) Dave Walton, farmer (starting with shot 1): "Agriculture is in a little bit of a tough spot right now. In the agricultural economy, it's already hit. You've seen layoffs from John Deere that are directly related to a lack of buying from farmers. We don't have money to spend, so we're not spending it on equipment."; 3. Walton walking in farm; 4. Stacked hay bales; 5. SOUNDBITE (English) Dave Walton, farmer (partially overlaid with shots 6-7): "A trade war would be devastating to agriculture. I mean, I don't really feel like we fully recovered from the last one. But I think there's a better understanding in Washington, D.C. of what the effects are when it happened the last time and so now they know what the potential is for damage to us if it happens again."; [SHOTS OVERLAYING SOUNDBITE] FILE: Washington D. C., USA - Date Unknown 6. Various of White House; FILE: Washington D.C., USA - March 14, 2020 7. Various of Capitol Hill, U.S. national flag; [SHOTS OVERLAYING SOUNDBITE] Wilton, Iowa, USA - Recent 8. Walton at farm; 9. Various of cattle; USA - Recent 10. SOUNDBITE (English) Matt Herman, Chief Officer, Demand and Advocacy, Iowa Soybean Association (starting with shot 9/ending with shot 11): "I think agriculture groups have recognized, especially soybean growers, that diversification and markets is something that we need to address. What's the diversification strategy and what are the markets can we fulfill."; Wilton, Iowa, USA - Recent 11. Various of Wilton getting into tractor, Wilton driving tractor; 12. SOUNDBITE (English) Dave Walton, farmer (starting with shot 11): "China has been a great trading partner with us. We need that trade, we need that trade with China, we need to trade around the world."; 13. Various of Wilton driving tractor. [Restrictions: No access Chinese mainland]