How tariffs have affected the hay industry
Steel and aluminum tariffs put in place by President Trump on China are impacting much more than the steel and aluminum industry. Just ask AllHay.com on the impact these tariffs have had on the hay industry.
China had an 8 percent tariff on U.S. hay but in response to President Trump increasing the steel and aluminum tariffs, they added another 25 percent on top.
This is a big deal to those in the hay industry.
A report from the University of California Agricultural Issues Center in Davis showed that the trade war with China is expected to push the price of alfalfa down 7.5 percent and cut revenue for alfalfa producers by about 377 million in 2018. The value of U.S. hay exports reached a new high last year at about $1.5 billion, which almost quadrupled the previous two decades.
China buys about 1.2 million metric tons of U.S. hay per year. It’s the number one export market for alfalfa hay and is second to only Japan for U.S. hay. The demand for hay mostly comes from dairies in China. The summer months are often down for trade as China is able to produce their own hay, but they rely on the U.S. in the fall and winter.
According to AllHay.com, “If China wants the highest quality hay from America; they are going to have to relent on their tariffs. Otherwise, American suppliers will increase their exports to other countries.”
As a forum for buying and selling hay across the world, AllHay.com is following the ever-evolving hay market this autumn very closely and wants to help others understand the impact tariffs put in place by the President are impacting the hay and farm industries in America.
