Arizona Reaps the Devastating Fallout of Trump’s China Tariffs

As a horse owner, I'm keenly aware of the price of alfalfa hay. The price fluctuates based on several market factors, as you can well imagine. Supply and demand influence the price, of course, but there are other elements that can make or break the hay market in our state.

A significant portion of Arizona's agriculture relies on alfalfa hay. It grows well here, and I recently learned that nearly half of the crop is exported, primarily to China.

China’s Alfalfa Pullback Hits Arizona Hard

Arizona’s alfalfa farmers are facing a tough season as China, once a top buyer of American alfalfa hay, has dramatically scaled back its purchases. Thanks to retaliatory tariffs totaling around 66%, Chinese dairy farms have turned to suppliers in Africa and Europe, leaving Arizona growers with warehouses full of unsold hay.

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How Much is Arizona’s Alfalfa Industry Worth?

Alfalfa is a big business in Arizona. The state exports over $100 million worth of alfalfa hay annually, according to Franetic.com, and one of the biggest importers is China.

Historically, China scoops up around 50% of the alfalfa market. Most of Arizona’s alfalfa is grown in the Harquahala Valley, where lush fields of alfalfa hay stretch for miles.

Hundreds of Arizona farmers grow alfalfa as a primary crop, and the international market exports are responsible for a large portion of their annual income from the harvest.

More about livestock in Arizona: These Things Are Illegal Around Animals in Arizona

Why Does China Import So Much Alfalfa?

China has a thriving dairy industry. Farmers use alfalfa as a primary feed source for their herds. The critical food source is in high demand, but the tariffs imposed by President Donald Trump have made buying U.S. alfalfa too expensive. They're now turning to other countries to meet their growing demand.

The impact of the shift away from American alfalfa has been keenly felt by Arizona's farmers and ranchers.

Before and After Tariffs: Arizona's Alfalfa Exports to China

Before the president imposed trade tariffs, China accounted for almost 50% of Arizona’s alfalfa export market. This accounted for nearly $100 million for Arizona's alfalfa export industry every year. China now buys most of its alfalfa from Africa and Europe instead.

No good tariff ever goes unanswered, and China escalated the trade war with around 66% in retaliatory tariffs. Chinese buyers drastically reduced purchases of U.S. alfalfa. Some Arizona farmers have lost almost half of their business overnight. Our farmers are struggling and facing an uncertain economic future.

Ever thought about this: If you hit livestock with your vehicle, who is legally at fault?

Arizona is Feeling the Pinch of Trade Tariffs

If you own horses or other large livestock, I know you're feeling the pinch as hay prices continue to fluctuate. The Harquahala Valley in Western Maricopa County, however, will reap the fallout more than most.