The 2019 Tomato Suspension Agreement continues to be under great debate amongst tomato growers and shippers on both sides of the issue. In this article, growers and shippers that have been directly affected by the agreement share how the issue impacts them.
Fred Leitz Jr. of Leitz Farms LLC in Sodus, Michigan, shares his thoughts on how the issue impacts tomato producers in the U.S. 
He points out that while the general consumption of tomatoes is up, U.S. producers like him have lost market share. “We have taken our tomato acreage down by 30 percent from our high point and Roma tomatoes down by 20-25 percent,” he says. “Consumers are going to lose domestic production. I’ve seen it in my area as well as Florida and other parts of the East Coast. Another two growers in my area quit in the last year.”
Key issue is labor
The critical point for U.S. producers is the difference in labor costs in both countries--Leitz estimates he’s paying $5/package of tomatoes in labor costs with his $21/hour labor costs, while he says Mexican growers are paying much much less. “They’re also shipping them into the U.S. at the same time I’m producing and into the same markets I am,” he says. “When they are paying what they are paying, and we’re paying what we’re paying, it just doesn’t work. It’s free trade, not fair trade, and we need to make it fair trade.”
One small glimmer of hope for U.S. producers on the issue is consumers’ consistent and increasing interest in eating local. “They want to do that, but it’s also price. If I charge more, buyers won’t budge much. They may give me a dollar once in a while, but they also say if I want them to buy here, they have to compete on price,” says Leitz.
What is the resolution?
So, how to resolve the issue? U.S. growers would like to see the elimination of the suspension agreement.
“The suspension agreement has been around a long time, and no one has ever had confidence in it. If anything, it seems to benefit the Mexican industry more than U.S. growers,” says Leitz. “I think most tomato growers around the country support getting rid of the agreement and letting dumping duties take effect. Maybe the duties will give the U.S. tomato industry a fighting chance.”
He also has a concern over the future of agriculture growing in the U.S. “Yes, I want to protect my markets and lifestyle. However, we have another generation behind us in farming, and they’re looking at all of this and wondering: is it worth doing? I don’t want to be known as the fourth and last generation on this farm. As hard as you work, if you can’t make a living, why do it?” Add to the loss of knowledge. “If we lose this institutional knowledge, it’ll take a couple of generations to get it back, if it ever comes back. The country will miss us when we are gone.”
In the coming days, an article on the Mexican side of the issue will be published.
Photo: Dreamstime
For more information:
Fred Leitz Jr.
Leitz Farms LLC
Tel.: +1 (269) 925-6987