California agriculture advocates are urging Trump to end tariffs standoff

FRESNO — Agricultural advocates in California are ratcheting up the pressure on the White House as a months-long trade dispute threatens to cost the industry billions of dollars and potentially put farmers out of business.

A group including Brian Kuehl, executive director of Farmers for Free Trade, a non-profit group, and Rep. Jim Costa, D-Calif., gathered at the Fresno County Farm Bureau office on Wednesday to push for a resolution to the trade war that has pitted the U.S. against major trading partners, including China, Mexico and Canada.

The Trump Administration, in a move to try and chip away at a trade deficit, has levied tariffs on imported goods, including aluminum and steel. In retaliation, the trading partners have slapped their own tariffs against the U.S., with California agriculture suffering the consequences.

“No one wins in a trade war,” said Costa.

The congressman, who is a third generation farmer, said California agriculture could take a deep hit in a prolonged trade dispute. The state relies heavily on exports, especially to China, Mexico and Canada.

A recent study by the University of California found that the higher tariffs would cost major U.S. fruit and nut industries $2.64 billion per year in exports. California exports nearly half of the $46 million agricultural goods it produces, with almonds, wine, dairy and nuts the top exported crops.

Costa is troubled by what he sees as a lack of strategy on the part of the Trump administration to end the trade stalemate. And while he is thankful the administration has kicked in $12 billion in relief to help farmers recoup some of their losses, it isn’t enough.

“This is a drop in the bucket when you look at the size of American agriculture,” Costa said. “It will not take care of a surplus of almonds.”

The almond industry is expecting a record-setting crop at 2.45 billion pounds this season.

Costa proposes that the president try to revive the Trans-Pacific Partnership, a trade deal with 11 countries that farmers supported. The TPP was scuttled by Trump shortly after the took office because he said it did not benefit the U.S.

“He is good at branding, maybe he can call it Trump’s Biggest Trade Agreement in the World,” Costa said.

Shaun Crook, 2nd vice president of the California Farm Bureau Federation, said California farmers and ranchers have generally supported the president, but that support has limits.

“We have been with the president but the road is getting narrower and shorter,” he said. “... we need a win on trade or we will end up losing farmers in California.”

Farmers like Don Cameron, general manager of Terranova Ranch, is worried that trade war is already causing uncertainty in the world market, resulting in sluggish sales and low prices. Also a concern, is the potential that foreign buyers may source almonds from California’s foreign competitors.

Cameron said he can withstand some short-term financial losses, if the U.S. scores a better trade deal in the long run.

“But the problem with that is our farms could be gone by that time,” said Cameron, who is also president of the California Food and Agriculture Board.