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What effects will shrinking/disappearing Extension budgets have for your farm?
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Reset or restart? |
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The ice sheet covering the continent of Antarctica is melting faster than previously thought, but it’s not noticeable here in Michigan. The temperature topped 70˚ F for one day in early March – the first time in six months – and last winter we shoveled our way through just under 9 feet of snow. Piles are still melting in the parking lots.
It’s just the kind of spring fruit growers love. There’s not much sign yet that buds are aching to burst. It’s good pruning weather for those who waited for the snow to melt in the orchards.
While there’s always uncertainty when it comes to weather, this has to be the most uncertain economy we’ve had to operate in, perhaps ever in our lifetimes.
It is far from clear what route we’ll take and how that will affect consumer behavior ahead. There seem to be two possibilities: Restart or reset.
Those who remember the $4.25 gasoline last spring, and see that as a significant cause of our economic slump as well as the financial debacle in housing, want to see an economic reset. They want to see the future economy built upon green energy.
President Obama, who ran for office with a promise of change, is meeting lots of resistance from people who really don’t want change. They want a restart. They want him to jumpstart the economy, just like they do in TV hospitals, with some high voltage to the heart muscle.
There’s no doubt that Obama’s enthusiasm for fundamental change is not yet shared by most Americans.
It’s kind of like that ice sheet in Antarctica. Yes, it’s melting. But it’s still a bit chilly in Michigan. Right now, it looks good for restarting production, but the market seems quite uncertain.
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Mark Powers
Vice President of the Northwest Horticultural Council
West Coast fruit growers were among those most affected by the Mexican government’s decision to implement retaliatory tariffs after the U.S. Congress cut off funding for a program that allowed Mexican trucks onto U.S. highways. We talked to Mark Powers, vice president of the Northwest Horticultural Council, which advocates for fruit growers in Washington, Oregon and Idaho.
Q. What is the impact of the new tariffs coming in the wake of the trucking dispute?
A. Cherries, apricots and pears all face a 20 percent tariff on their value as delivered to the Mexican border, so that includes the shipping costs. Pears are affected now, and if the dispute is not resolved, it will affect cherries in June. That could add 50 cents a pound to the price of cherries.
Q. In dollars, what would that mean for the fruit exports?
A. It could cost the pear industry the most, as much as $3.5 million in the next three months. Mexico is a big market for our pears. For cherries, the cost is less, under $2 million. And for apricots, the estimate is it will cost growers $400,000.
Q. Do you expect a resolution?
A. It will be complicated. It requires agreement by Congress, the administration and Mexico, and that won’t be a quick fix. It’ll take three to four months, at least. But it takes a legislative fix on the U.S. side.
Q. What is the core issue on Mexican trucks?
A. It’s complicated. It’s probably the case that the Teamsters don’t want Mexican trucks operating in the United States. Canadian trucks are allowed in. And studies have shown that Mexican trucks are as safe as, or safer than, U.S. trucks. But it’s not clear why Congress chose not to continue to fund the pilot program that was gradually providing access to trucks from Mexico. This has been a longstanding issue, and Congress should have realized there would be consequences.
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