Tariffs Hit California Trade to China and Drought Hits Wheat Hard

Tariffs Hit California Trade to China and Drought Hits Wheat Hard

Bob Larson
Bob Larson
From the Ag Information Network, I’m Bob Larson with your Agribusiness Update.

**Tariffs as a result of trade disputes with China are continuing to impact a range of California farm products.

In particular, tree nuts and wine face increased duties, despite last year’s implementation of the Phase One U.S.-China trade agreement.

Meanwhile, tariffs on farm products have been suspended for exports to Europe under an interim agreement between the U.S. and the E.U.

**Fueled by strong commodity prices and continued pandemic assistance, farmland values are skyrocketing, up 14% in the central Midwest and 10% in the central Plains.

That’s according to the latest numbers from the Federal Reserve banks in Chicago and Kansas City.

www.agriculture.com reports, farmland values for the Seventh District climbed 14% year-over-year in the second quarter of 2021, the largest gain in eight years.

Values are expected to rise again in the third quarter.


**Widespread drought has dampened expectations for wheat production and exports in the 2021/22 marketing year.

According to www.agrimarketing.com, in the Pacific Northwest, where most of U.S. white wheat is grown, a 29% year-to-year decline is expected, its lowest since the 1974/75 marketing year, with exports down 41%.

Hard red spring wheat is projected to fall 42%, its lowest level in over 30 years, and the lowest exports in over a decade.

Durum wheat is also projected to fall to its lowest level in 60 years.


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