Central Valley farmers navigate tariff impacts, rising costs
AI-generated summary reviewed by our newsroom.
- A Central Valley farmer reports 5% sales drop as tariffs shift Canadian buyer to Mexico.
- Growers absorb rising costs for fertilizer, seeds and packaging.
- Agriculture produces $10B and 39,000 jobs for the Merced County economy.
Tomatoes are the bread and butter of Scoto Brothers Farming in Merced, Loren Scoto said. But since tariffs on tomatoes went into effect less than three months ago business is down 5% as buyers have gone to growers in Canada, where prices are lower.
Scoto’s business is just one of those in the Central Valley feeling the effects of tariffs instituted by President Donald Trump over the last six months.
Local farmers have reported higher prices for foods such as fertilizer, seeds, and packaging. They are largely absorbing those costs rather than passing it on to customers, they’ve said.
“Nowadays, we’re like banging our heads against the wall, like, ‘What do we do to survive around here?’ ” Scoto said.
While farmers’ experiences may differ by operations and products, increased costs are a consistent pattern, which farmers are absorbing instead of passing them on to their customers.
“Farmers are price takers,” said Breanne Vandenberg, executive director of the Merced County Farm Bureau. “They’re not price makers, right? So, we can’t pass on any costs regardless of what the issue is.”
Agriculture is a major economic driver in Merced County pumping nearly $10 billion and supporting nearly 39,000 jobs in the county in 2023, according to the county Department of Agriculture.
Scoto said tariff rounds from earlier this year sent fertilizer costs “skyrocketing.” Estevan Romero of Golden Roots Farms in Madera said he has seen tariff impacts as the costs for microgreen seeds have increased.
“(They have) international importing,” Romero said. “I can imagine that wherever they get their supply, they probably had an impact. So, therefore, it had to be transferred over to the consumer because there was an increase.”
The impacts of tariffs have been mixed at Fat Cattle farm in Raymond. B.J. Fallert reported that their beef sales might be higher due to imported competition now selling at higher prices. When it comes to their tallow products, which is beef-based and used for skin care, Fallert has had to look elsewhere for packaging because of increased costs.
“Because we order our containers off of Amazon, our jars, and our different hardware, tubes and stuff that comes off of Amazon, I’m sure some of it comes out of China,” she said. “I just discontinued using those that became cost prohibitive and my prices to the consumer are the same.”
Scoto described the environment as chaotic due to uncertainty caused by federal and state actions.
“I mean, we are surviving here despite all odds,” Scoto said. “Things are getting more expensive every year, and … our margins are getting razor thin.”
