What do farmers think about trade wars?

What do farmers think about trade wars? Easy – we don’t like them.

What we do like is fair trade.

I have been asked a lot recently about tariffs and trade wars.

First, I am a big fan of free trade and globalization. 80 percent of my almonds and cotton get exported. With free trade, I have new demand which increases the value of my crops. The local and state economies benefit with income coming from overseas. This “rollover effect” creates jobs all through the economy. So, we all benefit, it’s not just the farmers.

It’s good economics. The Laws of Competitive and Comparative Advantage go back to Adam Smith and David Ricardo. As individuals and as nations, we produce what we do best and trade for the things we do not do as well. We all can win.

When I was Fresno County Farm Bureau President, we commissioned a study of the impact of trade on the local economy. That study showed that 25 percent of ag income comes from trade. Today that means nearly $1.5 billion in our local economy is directly related to trade. Did I mention I am a big fan of globalization and free trade?

But, and this is a big but farmers have been concerned about fair trade for a long time. There have been problems. This is where President Trump gets it right. At least as far back as 2016 he said, “I love free trade, but it has to be fair.”

In over 20years, he is the first one in D.C. to do more than wring his hands on the issue. Yes, trade wars are nerve wracking, but if we get more fair trade deals it is worth it.

I know a local farmer who had a whole truckload of fruit turned back at the border because one spider was found among the thousands of boxes of fruit. Look, I am a big fan of food safety as a farmer and as a consumer. But, abuse of phytosanitary standards is a global problem. Nations around the world are much more picky about what comes in to their countries than what goes out.

This is not fair. It is a case of free trade rules being weaponized against American farmers. This is especially hard on California farmers because of the amount of perishable fruits and vegetables we export.

These are called non tariff trade barriers. The key component of globalization is lowering tariffs – taxes – on imports. But, with these taxes down, how do countries protect their local businesses?

Many countries use nontariff barriers to trade. These nontariff barriers include technical rules and standards, labeling rules, misuse of phytosanitary and sanitary standards, unfair subsidies, anti-dumping rules, additional fees, ad hoc bans.

Many of these barriers do no more than slow things down. As annoying as that is, it won’t hurt my cotton and almonds. But, what about fresh fruits and produce? A couple days sitting in a yard while someone is doing the paperwork shuffled can really affect the quality of fresh fruit, can’t it?

So, why do farmers support President Trump when he threatens a trade war that affects our livelihood? That is a fair question. While we have supported the trend to free trade, we have been concerned for years about the fair trade issues.

President Trump is the first person in D.C. who has acknowledged the problem at a high enough level to do some good. We have had a lot of hand-wringing, but not much in the way of results.

The end goal is not a trade war. No one wins there. The end goal is fair trade.

Remember – whether you like him or not, what is the President known for? The art of the deal. I am not looking forward to a trade war. But, I am looking forward to a fair deal for farmers when it comes to international trade.

This story was originally published April 10, 2018 at 4:38 PM with the headline "What do farmers think about trade wars?."