Almond Industry Seeks Long-term Trade Solution
Farmers recently got a closer look at the $12 billion in federal assistance programs aimed at assisting ag commodities impacted by ongoing trade disputes in key markets. In the August 27 announcement, USDA detailed its initial plans for distributing millions of dollars to U.S. farmers and ranchers via several programs to provide some measure of relief to the economic effects of retaliatory tariffs from China and other major markets.
In the press release, USDA announced three programs: the Market Facilitation Program, the Food Purchase and Distribution Program and the Agricultural Trade Promotion Program. Almonds were allocated $63.3 million, with “program details yet to be determined.” It is believed these funds will be a combination of the Market Facilitation and Food Purchase programs.
“There are a lot of issues that still need to be addressed,” said Julie Adams, vice president, Global Technical and Regulatory Affairs, Almond Board of California (ABC). “The trade damages we’re dealing with are significantly more than what’s represented by mitigation programs.”
As an example, California almond farmers exported about $500 million to China/Hong Kong alone in CY2016/17. Tariffs in China have now increased from 10% to 50% as a result of retaliatory measures. The full impact of these tariff increases will become clearer as new crop shipments get underway.
The Almond Board has worked closely with the Almond Alliance of California throughout the developing tariff situation to ensure the voice of the industry is heard.
“The Almond Alliance has been actively engaged with USDA and legislature, leading efforts to ensure that almonds are included in all three mitigation packages,” said Adams. “The Almond Board is continuing to support these efforts in our meetings with federal agencies and leadership, stressing the value of almond exports, market development investments, and the negative impact of interrupted trade.”
While the USDA announcement provides some indication of what’s ahead, the rollout of assistance programs is still in process and rulemaking has not been finalized. In the meantime, the California almond industry will continue to push for fair inclusion of the farmers who grow 80% of the world’s almonds and drive the U.S.’ $5 billion almond industry.
Overall, the trade disputes have underscored the importance of having diverse, healthy export markets, a position of strength that the California almond industry has long enjoyed. For decades, ABC has supported the industry by making significant investments in foreign market development and expansion. Recently, with funding made possible by the assessment increase, the Almond Board started marketing programs in Italy, Mexico, and re-entered Japan. ABC also ramped up marketing activity in Germany and India.
“It’s been our longstanding commitment to create global demand for almonds that is ahead of supply,” Adams said. “Keeping the industry healthy, productive and efficient in light of any challenge, tariffs or otherwise, is a priority.”
The Almond Board of California will share more details with the industry as they become available, and programs are rolled out. Meanwhile, industry members are encouraged to get in touch with the Almond Board and Almond Alliance to express their views on the available packages.
Longer term, the priority is getting trade back to normal. “We’re hopeful a productive dialogue with the Chinese can continue so we can get back to focusing on market development,” Adams said. “Maintaining consumer trust, confidence and willingness to include almonds as part of their diet is something we’re continuing to grow, and we want to preserve that growth path for years to come.”
