Ag Alert June 18, 2025

Hay Continued from Page 7

our exchange rates,” he said. “For our in- dustry, we need to have a weaker dollar. It’s a matter of them (foreign buyers) being able to afford it.” Farm Credit noted that international buyers stockpiled hay ahead of the tar- iffs, which boosted Western prices and tightened supply. They changed course after the tariffs were announced by can- celing orders, with China reducing its alfalfa hay purchases. Buyers overseas now seek alternative suppliers, the lend-

er reported. Irungaray said hay-grow- ing regions in Europe, South America, Australia and Canada would be compet- ing for this business. “With our strong dollar and their weaker currency, they basically have a price ad- vantage,” he said. During Trump’s first term, when the U.S. and China were engaged in a similar tit-for-tat tariff conflict, the Asian nation retaliated with a 25% tariff on top of an

existing 8% tariff on American hay. This led to decreased sales for U.S. hay exporters as Chinese buyers turned to other regions for the forage. “That’s why the (U.S.) hay export busi- ness has been in the tank,” said Imperial County hay grower Ronnie Leimgruber. In 2018-19, increased imports from the Middle East helped eased some of the pressure. But that market today can- not fully replace lost Chinese sales, Farm Credit warned. China remains a “huge buyer” of California hay, Leimgruber said, but with its economy slowing, it is not as big a market as it was several years ago. Other Asian countries such as Japan, South Korea and Taiwan also are major buyers. The Middle East, especially Saudi Arabia, has become a top destination for California hay “because oil prices are good, and they’ve got money to buy our product,” Leimgruber said. The loss of export business is not the only factor dragging down domestic hay prices. The nation’s low cattle numbers is another reason, said Dale Tyson, an Imperial County hay grower and exporter. Prolonged drought, poor pasture con- ditions, and high costs for feed and other inputs led ranchers to reduce their herds. With fewer mouths to feed, demand for hay and other feed has fallen. “You can’t just rebuild the cattle herd overnight,” he said. “It takes several years, and it’s a slow increase.” California hay growers are expected to harvest 870,000 acres of the forage this year, according to the U.S. Department of Agriculture March prospective plantings report. That’s down from 940,000 acres in 2024. Meanwhile, Trump’s new tariffs, partic- ularly on imports from China, have slowed cargo volume at major U.S. ports. The Port of Los Angeles, for example, saw imports in May drop 9% from a year ago and 19% compared to April due to tariff impacts, the port said last week. Average ocean container bookings to the U.S. fell 17% in April, with those spe- cifically from China down 34%, Farm Credit reported. Lower import volumes affect the avail- ability of shipping containers and vessels for agricultural exporters, which may see rates rise due to reduced supply. Irungaray of Triple I Press said the cost to ship has so far remained relatively un- changed, but finding available space is getting tougher. Whereas he used to be able to ship every week, there are now weeks when he can’t ship any hay. “It makes it inefficient. It delays our ship- ment,” he said. Grower Leimgruber said he remains op- timistic about what Trump is trying to do and that he thinks “it’s going to be better for agriculture” in the long run. “But in the short term, it’s going to be tough,” he said. “There’s going to be win- ners and losers. And if you’re in the export business, you’re going to be a loser.” Ching Lee is editor of Ag Alert. She can be reached at clee@cfbf.com.

lowered its tariffs on Chinese imports to 30%, and China has decreased its import duty on American products to 10%. While the reduced rate has helped, Irungaray said, the strong value of the dol- lar—which makes American goods more expensive for foreign buyers—reduces de- mand and market share abroad. “Exports have been fairly slow for the last few years, and it’s mainly because of

Farm Bureau thanks the following Nationwide appointed agents * for their support California Farm Bureau proudly endorses Nationwide ® for insurance and financial services California Farm Bureau proudly endorses Nationwide ® for insurance and financial services Not all listed agents may offer both insurance and financial services

ALTURAS BILL MADISON - MODOC INSURANCE SERVICES 530-233-3432 #0551952 ALTURAS DOLBY INSURANCE SERVICES 530-233-2616 #055006 ANGELS CAMP SANGUINETTI & CO INSURANCE BROKERS-A 209-736-2200 #0552394 APTOS SCURICH INSURANCE SERVICES 831-661-5697 #0436405 BAKERSFIELD CLIFFORD & BRADFORD INSURANCE 661-283-8100 #0673141 BAKERSFIELD INSURICA INSURANCE SERVICES LLC 661-834-6222 #6011031 CHICO AVRIT INSURANCE AGENCY 530-891-1302 #0F06687 CHICO RELATION INSURANCE SERVICES, INC. 530-342-6421 #0F89850 CHICO SWEENEY & SELLAND INSURANCE SERVICES 530-487-8200 #8421174 CHOWCHILLA PACIFIC AG INSURANCE 559-665-3434 #0C84245 CORCORAN PACIFIC AG INSURANCE 559-992-1245 #084245 CRESCENT CITY WESTERN VALLEY INSURANCE ASSOCIATES, INC. 707-465-5999

FRESNO DALENA/BENIK & ASSOCIATES 559-448-9580 #253862 HANFORD JAMES G. PARKER INSURANCE & ASSOCIATES 559-589-2221 #0554959 HANFORD PACIFIC AG INSURANCE 559-584-3391 #611681 HOLTVILLE COOPERSWEST INSURANCE AGENCY 760-356-2986 #0E32771 LIVE OAK BUTTES INSURANCE AGENCY 530-695-2151 #0530743 LOS BANOS WESTERN VALLEY INSURANCE ASSOCIATES, INC. 209-826-5667 #0649647 MERCED BARLOCKER INSURANCE SERVICES 209-383-0220 #134714 MERCED FLUETSCH & BUSBY INSURANCE 209-722-1541 #0358327 OAKDALE BASI INSURANCE A DIVSION OF HUB INTERNATIONAL 209-847-3065 #075776 OAKDALE STEWART KRIESE INSURANCE AGENCY INC. 209-847-8025 #0F60672 OROVILLE RELATION INSURANCE SERVICES, INC. 530-533-3424 #0F89850 PETALUMA DON RAMATICI INSURANCE INC. 707-782-9200 #0449871

PORTERVILLE INSURICA INSURANCE SERVICES LLC CA 559-781-5200 #6011031 SALINAS BAY AND BASIN INSURANCE 831-771-5344 #6005770 STOCKTON SANGUINETTI & CO INSURANCE BROKERS 800-350-7700 #0552394 TRACY DENNIS ALEGRE INS. AGENCY, INC. 209-835-7663 #0E44203 TURLOCK WESTERN VALLEY INSURANCE ASSOCIATES, INC. 209-634-9031 #0649647 TURLOCK WINTON-IRELAND, STROM & GREEN INSURANCE AGENCY 800-790-4875 #0596517 WILLOWS HUTSON INSURANCE AGENCY, INC. 530-934-7500 #0H65133 WILLOWS RELATION INSURANCE SERVICES, INC. 530-934-3361 #0F89850 WOODLAND ARMSTRONG & ASSOCIATES INS. SERVICES 530-668-2777 #0B50501 WOODLAND JACK CRAMER INSURANCE 530-662-1076 #0684453 YUBA CITY FARM WEST INSURANCE SERVICES 530-741-0441 #0B99774 YUBA CITY ROSE INSURANCE AGENCY, INC. 530-673-8862 #0553715

Farm Bureau thanks the following Nationwide appointed agents * for their support

Not all listed agents may offer both insurance and financial services

#0649647 FRESNO BARLOCKER INSURANCE SERVICES 559-431-3380 #0134713

* Agents: Want to show your support of Farm Bureau? Call CAFB at 916-561-5570 to learn how to participate in future ads.

16 Ag Alert June 18, 2025