dairy

Reporting from Washington — A bank has seized a Tulare County dairy farm owned by Rep. David Valadao and his family to resolve more than $8 million in loans that have not been repaid, according to court documents.

In November, agriculture lender Rabobank sued Triple V Dairy in Fresno County Superior Court alleging failure to repay loans for cattle and feed totaling about $8.3 million. The Republican congressman is named in the suit along with his wife, four other family members, two other farms and 50 unnamed defendants. Also listed in the suit is a separate farm owned by the family, Lone Star Dairy, in which the congressman has no stake.

Both sides agreed March 28 to hand control of the farm over to the bank until it is sold. The bank appointed a local business owner to oversee the daily operations of the farm and began to sell off livestock and farming equipment to settle the debt.

“Like so many family dairy farms across the country, burdensome government regulations made it impossible for the operation to remain open,” Valadao said in a statement. “While this has been an especially difficult experience, I remain hopeful that sharing my story will help those going through similar situations.”

The next court session in the case is scheduled for July 16.

House rules prohibit Valadao from having an active role in the day-to-day operations of the farm, which was largely managed by his brothers. Valadao lives near Hanford on the property of Valadao Dairy, which is managed by his father and is not involved in the lawsuit.

According to the California Department of Food and Agriculture’s annual summaries, almost 36% of dairy farms in California shut down between 2001 and 2017. In the last five years, at least 50 dairies in Fresno, Kern, Kings and Tulare counties have closed.

Valadao grew up in the dairy business and in 1992 became a partner in the family’s Central Valley dairy. Working on local agricultural interests through the California Milk Advisory Board and the Western States Dairy Trade Assn. spurred an interest in politics, and Valadao was elected to Congress after serving in the state Assembly.

Valadao’s stake in the Triple V and Valadao dairies has consistently made him one of the poorest members of Congress. According to his annual financial disclosure report, Valadao’s stake in each dairy is worth between $1 million and $5 million, but lines of credit against the farms and equipment give him an estimated net worth of negative $17.5 million.

Valadao is currently seeking a fourth term representing the 21st Congressional District, which stretches across rural portions of Fresno, Kings, Tulare and Kern counties.

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sarah.wire@latimes.com

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Dec. 22 (UPI) — Beijing unveiled tariffs as high as 42.7% on imports of European Union dairy products on Monday, saying the subsidies Brussels provided to producers in the 27-country bloc were the cause of “substantial damage” to China’s dairy industry.

The import taxes of between 21.9% and 42.7%, which come into force Tuesday following a 16-month-long anti-subsidy probe by China’s Ministry of Commerce, will affect France’s famous Roquefort, other blue, fresh and processsed cheeses as well as whole and unsweetened milk and cream.

“The investigating authority has preliminarily determined that imported dairy products originating from the European Union were subsidized, causing substantial damage to the relevant dairy product industry in China, and that there is a causal relationship between the subsidies and the substantial damage,” the ministry said in a statement.

It said that the highest levy would be applied to the products of firms that had failed to cooperate with the investigation with firms that had been cooperative only subject to a rate of 28.6%.

Firms named in the ministry list hailed from across the bloc with France, the Netherlands and Belgium heavily represented. Italian and Spanish producers also feature. Most companies were hit with a rate of 28.6% or 29.7%.

The Netherlands’ Friesland Campina and its subsidiary in neighboring Belgium were both hit with the top 42.7% rate along with an “Other EU Companies” grouping, which is not specified. It is unclear if this group is all EU companies not named in the document that export to China.

The EU criticized the action, saying it was neither justified nor warranted.

The move came just over a year after the EU hit China’s massive EV sector with import tariffs of as high as 36.3%, alleging unfair competition due to subsidies provided to the industry by the Chinese government.

Among the big three EV makers — BYD, Geely and SAIC — BYD and Geely were slapped with duties of 17% and 19.3% respectively, along with a 21.3% tariff on other “cooperating companies.”

The top rate was applied to SAIC together with other EV makers deemed not to have cooperated with the EU’s investigation.

The EV tariffs also saw Beijing launch anti-competition probes into Europe’s brandy and pork products industries, leading to accusations the EU was dumping surplus pork production in the Chinese market.

In September, Beijing imposed short-lived tariffs of between 15.6% and 62.4% on EU pork and pig by-product imports, but revised them down to between 4.9% and 19.8% on Tuesday.