The Potential Impact of Policy Changes on Food Prices
As Arizona and other regions face a cold snap, the real concerns for consumers might extend beyond the chilly weather. Experts in economics suggest that changes in national policies under President Donald Trump could have significant effects on farmers and, subsequently, grocery prices.
Increases in grocery costs are anticipated as a result of stricter immigration policies and proposed tariffs. According to George Frisvold, a professor specializing in agricultural and resource economics at the University of Arizona, Arizona’s agricultural sector heavily depends on undocumented workers and imports, such as fertilizer, from Mexico.
Frisvold emphasizes the potential impact, stating, “So nationally it’s 41%, California is at 60%. So you know, these are people harvesting crops. If these people go away, that would have a dramatic impact.”
Experts liken the expected rise in prices to the introduction of a sales tax. Frisvold explains, “Right now, if you’re buying food products, there is not a sales tax. What people would see is, ‘oh yep, now there is a tax on, you know, things that come from Mexico.’ If it’s a 25% tariff, that means everything will be 25% more expensive.”
For those interested in monitoring food price trends, Frisvold recommends visiting the USDA website for updates.
Despite being accustomed to cold snaps, farmers may face more challenges from tariffs and labor shortages than from the weather itself. Farmers routinely adjust their crop selection based on climate conditions and market demands each season, but these new factors could significantly alter their strategies.
“Production costs could go up, which could discourage planting,” Frisvold notes, highlighting the broader implications for agricultural production.
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