Little panic in pecan region
Measured concern so far among southern NM’s nut orchards, with little immediate impact
ANTHONY — The rows of neatly pruned pecan trees that line N.M. 28 from Anthony through the Mesilla Valley to Las Cruces make the two-lane state road a scenic route, but the orchards also showcase the importance of the crop for New Mexico.
“Doña Ana County is the top pecan-producing county in the country,” said David Salopek, a third-generation pecan farmer.
China is the top foreign buyer of U.S. grown pecans. So farmers in southern New Mexico are concerned about China’s additional 15 percent tariff on tree nuts that brings the tariff on pecans to 22 percent, but the concern is measured.
“It’s a very popular item over there. It’s not going to make things any easier; I don’t think it’s a disaster, either,” Salopek said.
China imposed the increase last month in retaliation for President Donald Trump’s 25 percent tariff on steel and 10 percent hike on aluminum. Democratic Sens. Tom Udall and Martin Heinrich of New Mexico sent a letter April 13 to U.S. Trade Representative Robert Lighthizer saying retaliatory tariffs will hurt American farmers.
New Mexico produced more than 72 million pounds of pecans in 2016 valued at a record $213.1 million. “However, increased tariffs are already causing significant uncertainty and will make farming difficult for our state’s growers and producers,” the senators wrote.
Profits for New Mexico pecan growers have climbed along with China’s appetite for pecans, which are considered a healthy treat eaten at the time of the Chinese New Year.
“Pecans are a little elongated. They considered it a nut to promote long life,” Solopek said.
U.S. growers introduced the nut to China in the mid-1990s, and the country now buys about a third off all pecans produced in this country.
“China normally starts placing an order this time of year,” said Greg Daviet, a pecan grower in the Mesilla Valley with 325 acres.
There has been “no immediate impact” from the tariff hike, he said. “I’m not panicked, but it’s something I’m paying attention to,” he added.
China cut the tariff from 25 percent to 10 percent in 2015, which helped boost pecan sales there.
Some New Mexico farmers say that if America’s nuts become too pricey, China will buy pecans elsewhere.
“Probably you’ll see a few more pecans leave for China from Mexico,” said Salopek.
Demand for pecans in China has led to higher prices in the U.S. in recent years and prompted thieves to sneak into orchards to steal the nuts during the winter harvest season.
If Chinese demand for U.S. grown pecans falls, so will prices in the U.S.
But here, too, timing could help farmers.
The American Pecan Council is developing an ad campaign to encourage Americans to eat more pecans, a nut that is native to America.
It will be similar to ad campaigns like “Got Milk,” which promote specific agricultural products.