Farm Raids & Tariffs: How Are They Affecting Our Produce
With immigration enforcement efforts increasing and tariffs rising, there is no doubt America will start to feel the effects of it soon. It will affect the prices you have to pay for produce, the accessibility you have to certain products, the stability of related supply chains, the economy, and so much more.
Farm Raids
Recently, farms in California have been the grounds of several ICE raids. Workers who are responsible for helping all of America put food on the table are being detained.
According to reports from the federal government, it is estimated that about 40% of crop farm workers lack work authorization.
Because of increased immigration enforcement actions, agricultural labor (especially segments of the industry where a high level of human skill is required), related sectors of the industry, and associated economic chains will start to experience significant detrimental changes.
Immigrants are an integral part of America’s agricultural industry. They help meet labor demands, support food production by providing America with a steady supply of produce, and assist in economic stability. Since places like California, which happens to be a higher level output farming region, are being targeted the most, the losses felt will be extreme.
The loss of immigrant workers means an influx of labor shortages which leads to farm closures, supply chain disruptions, and loss of access to affordable produce. Labor shortages and supply chain disruptions can also mean the loss of access to certain produce products altogether. If harvests are missed due to low labor, delays can be prolonged, and perishable products won’t be able to make it to the retail chain. This also explains rising prices, when supply is low, prices have to rise to be able to make up for the lost products. Prices may also have to rise because employers need to raise wages to attract domestic workers.
If for some reason you don’t care about the human loss side of ICE raids, think about how the loss of them will affect you because I assure you it does. The more farm raids there are, the quicker we will start to feel the effects.
Tariffs
Tariffs have been a big talking point by the Trump administration as of late, though we have yet to feel its full effects with all of the moving deadlines.
So far, we haven’t seen any tariffs that have greatly shifted inflation for the U.S., but Trump’s so-called "reciprocal" tariffs that carry a deadline of August 1st may be the ones to cause that shift. These tariffs that will be imposed on dozens of countries were supposed to hit during the second week of this month after a three month delay, but it seems to have been delayed yet again. Trump insists that this new August 1st deadline will be the final one with no extensions. This extra delay has only prolonged uncertainty for businesses with what to expect in relation to exactly how they need to adapt to the effects of the new tariffs.
What we do know for sure is that American consumers, especially those with a lower-income, can expect to be paying significantly more for products within days once these tariffs hit. The amount a price rises for certain products will depend on what country the products have been imported from and what percent tariff that country has been hit with. Since produce is exceedingly more perishable than processed and frozen foods, we can expect to be paying more sooner for them than the foods that can be stockpiled by businesses while tariffs are still lower.
America can also be expected to have a lowered amount of productivity and output because of the raised tariffs. Tariffs make it more difficult and more expensive for a country to focus on engaging in economic activities that create a competitive output.
ICE farm raids and tariffs will affect more than just the prices of our produce: they will create major shifts in the way the entire industry runs. These things don’t just negatively impact those in the industry, the entire country will have to deal with the consequences. Assuming the latest tariff deadline isn’t extended again, we can expect to feel the effects of it starting in August. Unfortunately, those who will be most affected are the ones who can’t afford to be.
