From rising input costs to shrinking exports, the economic strain tied to trade tensions is creating uncertainty across the state’s agricultural landscape.
Trade tensions, rising costs put pressure on Central Georgia farmers
From rising input costs to shrinking exports, the economic strain tied to trade tensions is creating uncertainty across the state’s agricultural landscape.
Author: Fareeha Abrar
Published: 7:48 AM EDT May 20, 2025
FORT VALLEY, Ga. — As Georgia farmers prepare for the critical summer growing season, they’re facing mounting pressure from factors well beyond their fields.
From rising input costs to shrinking exports, the economic strain tied to international trade tensions is creating uncertainty across the state’s agricultural landscape.
Lane Southern Orchards CEO Mark Sanchez says one of the biggest challenges right now isn’t just the drop in exports — it’s the increasing cost of keeping farms running.
“The tariffs will impact us on the other side and what we buy, all of the goods and services that we buy here to run our business,” Sanchez said. “We’re facing the same prospects as everybody else — that those prices may go up.”
Sanchez adds that exports to China have seen a dramatic decline since tariffs were imposed in recent years.
“I would say that containers we load for Chinese export now is probably in the 20 to 30% range of what we did prior to 2017,” he noted.
As costs for fuel, fertilizer, and packaging materials continue to rise, so does the cost of maintaining Georgia’s signature orchards, including nuts, fruits and vegetables.
Economist Greg George explains that tariffs are often used as political tools, making them difficult to unwind, even when the economic consequences become clear.
“Tariffs are typically a political tool to grant favors to specific industries to protect them from imports,” George said. “So there can be a lot of political capital tied up in these things, and it can be difficult to negotiate people out of that without serious threats.”
George says the ripple effects aren’t limited to agriculture. Consumers could see higher prices at the grocery store, while businesses across sectors feel the pinch from rising costs and slower trade.
While farmers are doing their best to plan ahead, Sanchez and others say there’s only so much they can do amid such volatile conditions.
“Sometimes it’s not our fault if diplomacy fails,” George added. “Sometimes other countries are just going to be hard-nosed and not give up on their strategies.”
As summer approaches, Georgia farmers are watching both the skies and the markets, hoping for stability in a season that’s shaping up to be anything but predictable.
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