Planters, growers stuck rooted to ever-changing landscape amid tariff war
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Peggy-Sue Niemczyk of Hugo is worried about how the Trump administration’s tariffs will affect her greenhouse business.
Industries like agriculture and horticulture rely on planning ahead and investing to get ready for the planting season. Sometimes taking out mortgages and loans to finance their crops or seeds. They’re committed ahead of time with very little room for error.
“Being a seasonal grower… you gotta hit it right first time,” Niemczyk said. “Otherwise, you don’t have a chance to make it up. So, please make up your mind now. You want to buy a geranium? You want to buy a marigold? Because we’ve already made that decision. We’re going to grow a marigold. We’re going to grow geranium for you.”
However, the Trump administration’s recent tariffs on Mexican and Canadian products leave many in the agricultural and horticultural industries anxious and worried about unfulfilled contracts or trying to figure out how they’re going to take on the financial losses as the growing expenses are mounting on their bottom line.
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Canada is a big supplier of peat, a gardening staple used in seed starting at many gardening centers. It’s now affected by a 25 percent tariff. Fiber pots made of peat also come from Canada and took on the extra cost.
There are also tariffs placed on fertilizers, including potash. Politico reports some Republican lawmakers would like to see an exemption for peat, potash and other agricultural products.
Since their business does wholesale, Niemczyk said they’re at a disadvantage and unable to change their prices on a whim. She said ultimately the cost will fall on consumers, noting delicate relationships that are being tested and navigated for distributors and suppliers.
“Our relationships are very good in the horticulture industry,” she said. “They’re very loyal and they’re very good, but the problem is they don’t like to have to do that to their customers, and there gets to be a price point where you just can’t go past … you can’t be paying $10 for one 4-inch geranium.”
“We tried to lock in our prices, and they say that they’re going to hold those, but there’s no guarantee,” she added. “Everybody has to cover their own business essentials as they come in … it’s going to come trickling down to us again, which is something that the uptick is going to end up at the retail spot where we sell wholesale. We’ve increased that price. We expect our retailers to do the same thing. They will increase their prices as well.”
The uncertainty of the tariffs is what has many in the industry worried, Niemczyk said. She added many are “very cautious,” as they weathered the trade war several years ago during the first Trump administration, though the landscape seems more precarious for seasonal industries.
For planters, growers and the industries reliant on planning ahead, they’re committed to something that is constantly changing.
“I would like everyone to understand we put our money first and then produce our product,” Niemczyk said. “We’ve already purchased stuff that we don’t have the opportunity to say, ‘No, I don’t want that. Let’s cancel that, it’s yours.’ You bought it. It’s yours. You can’t send this stuff back. You can’t cancel your contract. You can’t do anything about it. You’re in it for the season.”