Not Enough Juice
Trade, budget concerning to citrus
California Citrus Mutual officials and those from other fresh produce industries were in Washington D.C. recently to express their concerns over such issues trade, the budget, and the workforce in the fresh produce industry.
CCM president Casey Creamer met with trade officials last week to express his concern the citrus market is continuing to suffer from retaliatory tariffs levied by
China.
CCM’S Casey Creamer and Alyssa Houtby also recently attended the United Fresh Government Relations Council meeting in Washington, D.C. and joined more than 35 industry leaders from around the country for meetings on Capitol Hill.
Creamer met with trade officials with the United States Trade Representative and the U.S. Department of Agriculture. While Creamer congratulated the administration on the completion of the Phase One Trade deal with China, he stressed the citrus market was still suffering due to tariffs.
Creamer said navel sales were down 36 percent in 2019 as compared to the prior three-year average.he added 2020 was off to a much slower start than in 2019. Creamer also stated prices were being impacted outside of China and growers are reporting what they’re making isn’t enough to cover the cost of their production.
Creamer stated administration officials told him they intend to ensure China will keep its commitment to increase the amount of agricultural products in buys fro the U.S.
In addition, Creamer also said officials told him China hasn’t indicated it will reduce what it’s buying from the U.S. as a result of the coronavirus. Now is the time for citrus to be prioritized, Creamer said, as Phase One of the trade deal
with China went into effect on Saturday.
He said the peak export season begins around March 1 and Chinese consumers dealing with the coronavirus would benefit from additional citrus purchases
As part of Phase One in the trade agreement, China is reducing its retaliatory tariffs on agricultural products it imposed on September 1 in half. But that only reduced the tariff on citrus by 5 percent, leaving a total tariff and valueadded tax of 65 percent.
The 5 percent tariff reduction isn’t enough to lead to a change in the market, Creamer said.
Also, the fresh produce industry has expressed concern obver President Trump’s proposed budget, which calls for an 8 percent cut in funding for discretionary spending in the U.S. Department of Agriculture. The budget also calls for cuts in crop insurance and agricultural subsidies.
Ag officials also actually expressed concern over additional funding for the border wall at the expense of Department of Labor and the State Department. The President’s budget calls for an additional $2 billion for the border wall, but would cut funding to the Department of Labor and State Department which play a key role in immigration and the visa process for ag employers.
But it’s not likely Congress will go along with the increased border wall funding at the expense of cuts to the Department of Agriculture.
Senate Begins work on Ag workforce legislation
THEU.S. House of Representatives passed the Agriculture Workforce Modernization Act late last year and legislative efforts are now moving forward in the Senate.
But the Senate won’t consider the House bill and instead will introduce its own bill, although that bill is expected to be similar to the House Bill. Senator Thom Tillis (NC) and Senator Diane Feinstein are working on a bipartisan that’s expected to be introduced after the March primary.
This legislation will also be impacted by the Supreme Court’s anticipated ruling in June on Deferred Action for Childhood Arrivals, DACA.