How Trade Wars Have Impacted Dairy Farms in California

For the last two years, the two wealthiest nations in the world – the United States and China – have been engaged in an escalating, tit-for-tat style trade war. It began in January 2018 when President Donald Trump announced that his administration would impose a tariff on Chinese-manufactured solar panels and washing machines with immediate effect.

At the time, that may have seemed like a fairly innocuous event. But since then the conflict has grown to the point that it now threatens the very integrity of major U.S industries, including food and agriculture. The dairy industry in California is but one example of a major agriculture institution that is now threatened by the conflict.

In this post, we’ll explore how the trade wars have affected the California dairy industry, and how ag land loans in California might be able to offer some protection.

A Major Blow to California-Based Agriculture

California produces a significant portion of the total agricultural output in the United States, and before the onset of the trade war, China was among the top three buyers of California-based agriculture. One of the greatest blows to the United States’ economy came when China cut off its imports of all U.S-manufactured agricultural products. California, a state with an economy based largely on agricultural output, was among the regions that was most seriously affected.

Today, as China begins to search elsewhere for amicable trade relations, California dairy farmers are beginning to harbor real concerns that foreign producers might completely cut them out of the market. Their worries are being compounded even further by the increasingly start realities of climate change and water shortages.

What Can California Dairy Farmers Expect from the Future?

In May 2019, President Trump announced that his administration would provide a $14.5 billion aid package. This aid package is intended to provide U.S farmers with some relief during the economically perilous times that lie ahead.

While this money will undoubtedly help many farmers – in California and elsewhere – to cope with the ramifications of losing such a major market, many dairy farmers view it only as a temporary “Band-Aid” solution. The only option for repairing the harm that has been done to California’s dairy industry – and to U.S agriculture in general – is to re-establish and strengthen foreign markets.

In today’s acrimonious political climate, that’s much easier said than done. This has major ramifications for farmers. However, farmers in need of aid may be able to secure an agriculture land loan in California.

What Can Be Done?

As of early 2020, no one can say with certainty how much longer the trade war between the United States and China will continue to drag on or what the future consequences of the conflict are going to be. What can be said with certainty is that U.S farmers and agriculturalists would be wise to continue to educate themselves as much as possible about the conflict. It’s also a good idea to take action in the present to ensure that their property and businesses are protected to the greatest possible extent.

Shop for California Agriculture Loans Today

At MSF Agriculture, we specialize in providing individuals with the resources, advice, and direction that they’ll need to secure a high-quality agriculture land loans in California. Contact us today to get started!