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Tariffs drive up costs for Georgia produce growers

Georgia's fruit and vegetable producers are preparing for further challenges as new and existing tariffs raise concerns over input costs and international competition. The effects come on top of what many in the industry call one of the most difficult years in recent memory.

State Senator Drew Echols, a fifth-generation farmer from Gainesville, co-owns Jaemor Farms, where his family grows peaches, strawberries, and pumpkins on 500 acres. While he hopes stricter trade terms could curb cheap imports from countries like Mexico, he's also worried about the ripple effects of retaliation from China, which could drive up the cost of fertilizers and pest control products widely used on Georgia farms.

"Hopefully, with this mess, we become less dependent on other countries to grow food," Echols said. "That's the endgame."

Last year's peach harvest was devastated by a cold snap, wiping out much of the state's supply. Though Echols has managed to rebound, he now faces higher costs for agricultural inputs. China, a major supplier of farm chemicals, remains a central concern as trade tensions persist.

"That makes our input costs go up," he said. "But our prices won't reflect those increases since we have to stay competitive."

Echols also expressed disappointment that recent U.S. tariff actions did not include Mexican produce. "We were hoping under these tariffs that President Trump might smack Mexico a little bit," he said. "And he did for everyone else — except Mexico. That is not good for produce in the Southeast in the short term."

Statewide, vegetable and fruit growers have also had to contend with weather-related disruptions and pests. In early 2023, many crops were hit hard by fluctuating temperatures and excessive rainfall. According to USDA data, total crop production across Georgia was down 20% in early 2024 compared to the same period in 2023.

The economic pressure is mounting. Many growers are now postponing investment decisions or limiting production due to rising input costs, lower returns, and volatile trade conditions.

Looking ahead, growers are calling for consistent and targeted trade policies that support domestic producers while managing the risks of higher production costs. "It's already been a rough road," said Echols. "Now we're just trying to find a way forward without getting priced out."

Source: State Affairs

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