CALIFORNIA FARMERS FORCED TO USE ON-FARM RENEWABLE ENERGIES WITH RISING TARIFFS

May 20, 2019

Tariff increases are coming for California agricultural exporters. Two of California’s largest exports, Almonds and Walnuts are in line for tariff increases. China State Council Customs Tariff Commission announced their plan for agricultural imports.

How will this effect California Farmers? With operating costs registering at some of the highest in history, farmers are facing added pressure on thin net income margins. Farmers are forced to look at cost cutting technologies like on-farm renewable energies.

“Added tariffs will more than likely raise the price of almonds and walnuts,” explains Ken Fournier of Revel Energy. “But California farmers can’t pass all added costs to consumers. They face faster rising costs than revenue. We have more and more farmers coming to us to help them cut costs wherever possible. Revel specializes in drastically cutting electricity bills which for nut farmers is the majority of their operating costs.”

Revel Energy offers turnkey commercial grade solar, energy storage, cogeneration, LED lighting and other on-farm renewable energies. Read more on Revel’s On-Farm Energy Saving Tips.

The following was shared in the APGov Report published by American Pistachio Growers.

“Following the United States announcement that additional tariffs would be implemented on several Chinese imports, China’s State Council Customs Tariff Commission announced that it will be raising tariffs on American imports. Over 3,000 American products were included in this round of tariffs including everything from fish to plywood, to live horses to mango juice to cut flowers and several agricultural commodities; peanuts, pecans, roasted almonds and walnuts as well as roasted pistachios.

The tariff will increase the ad valorem tariff on roasted pistachios (HS 2008.19.99) to 30% effective June 1, 2019. This marks a 25% increase in the tariff on roasted pistachios since the United States trade dispute with China began. Raw (in-shell and shelled) pistachios were not hit in this round of tariff increases.

Roasted Almonds: 
25% additional tariff – other prepared/preserved nuts or seeds, not elsewhere specified (20081999)

Roasted Walnuts: 
Possible 25% additional tariff – China’s tariff list is unclear whether walnuts fit into this category (20081999)

Pecans: 
25% additional tariff – Other prepared/preserved nuts or seeds, not elsewhere specified (20081999)

Peanuts:
10% additional tariff – roasted peanuts (ground nuts) (20081120)
10% additional tariff – peanuts (ground nuts) in shell, not for cultivation (120241)
20% additional tariff – peanuts (ground nuts), shelled, whether or not broken (1202.42)
20% additional tariff – peanut (ground nut) kernels, in airtight containers (20081110)
25% additional tariff – other peanuts (ground nuts) prepared/preserved, Not elsewhere specified (20081190)” Read more here

Revel is on a mission. Dedicated to renewable energy solutions since 2009, Revel Energy was formed to provide Agricultural, Commercial and Industrial businesses with alternative energy beyond solar. Revel stands out from the competition by paying attention to what makes good business sense to each individual client, implementing a wider range of technologies to free up capital and make businesses sustainable and more profitable.

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