China-US Trade Tensions: Georgia pecan farmers could be casualties of global dispute

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Over the past 20 years, tons of US pecans have been exported to China. And no state sells more of them to China than Georgia. Farmers have spent decades fostering friendly relationships with China, resulting in lucrative sales. But the Trump administration's trade war is threatening the economy of rural Georgia, a state that solidly supported him. Sean Callebs reports.

If you have a taste for pecans, Ellis Brothers shop, tucked away in rural south Georgia has what you want. For generations, the big Thanksgiving and Christmas holidays made up the bulk of pecan sales in the US. That was before China discovered the pecan. It allowed growers to come out of their shell, and really expand.

BRAD ELLIS ELLIS BROTHERS PECANS "When the price went up, it was more attractive for growers and really flipped the growing industry and what we could do." "We have doubled our production, on the grower end -we have expanded this store -it is the fifth time."

SEAN CALLEBS OCILLA, GEORGIA "Eventually these - are going to become these -- Georgia pecans. Each year, the state of Georgia produces about 100-million pounds, about a third of all the pecans produced in the US each year."

A whopping 70 percent of Georgia pecans are sold to China.

RANDY HUDSON 4TH GENERATION PECAN FARMER "In fact, from the late 1990's to today's prices, the price has more than tripled - it is primarily due to China moving into the pecan market."

Randy Hudson is a big time pecan grower. Hudson was one of the first to crack the Chinese market in the late 1990's.

RANDY HUDSON 4TH GENERATION PECAN FARMER "They didn't even have a name for pecan in China at that time -so they developed a name, be gan guo."

Amid his 100-year-old pecan trees, Hudson says 20-years of fostering business relationships throughout China, is at risk. He says pecan farmers are caught in the growing trade war.

RANDY HUDSON 4TH GENERATION PECAN FARMER "We were looking forward to what we thought might be a banner year, - then all of a sudden here we are looking at a 47-percent on top of our product."

In just a few months, the tariff on pecans has skyrocketed from 7 to 47 percent -adding about a dollar to each pound of pecans sold. Pecans are among the first casualties as China responded in a tit for tat battle. Hudson laments he doesn't want to talk politics -but he does want this budding crisis resolved.

RANDY HUDSON 4TH GENERATION PECAN FARMER "We are directly the people that are being affected. It is out of our pockets that these millions and millions of dollars will flow, that is going to adversely affect rural Georgia -and rural America."

BRAD ELLIS ELLIS BROTHERS PECANS "As a grower, it scares you -because any publicity can drive the price down -could put us back 10-15 years where we were, real fast."

Instead of massive expansion and record profits. This could be the year that buries pecan growers, unless the U.S. and China can talk their way out of the punishing trade war. Sean Callebs, CGTN in South Georgia.