Challenges Faced by Bergen’s Greenhouses Amid Economic Uncertainty
Chris Bergen, who manages a prominent commercial greenhouse enterprise in northern Minnesota, describes his current situation as akin to “walking a tightrope” during the early months of President Trump’s second term. The unpredictability surrounding the administration’s trade and immigration policies has instilled caution in his approach to potential expansion plans.
As a major player in the production of bedding plants, perennials, and a variety of flowers, Bergen’s Greenhouses faces vulnerabilities on multiple fronts.
- Every June, the company imports over six million pounds of peat moss from Manitoba. However, suppliers have halted price quotations pending more clarity on tariffs.
- The plastic flower pots sourced from China could become more expensive if tariffs remain unchanged, further squeezing the company’s already “razor-thin margins.”
- There is also concern about labor shortages if the administration ends a program that provides temporary visas to many of its agricultural workers.
“We’re not putting our foot on the brake, but we are taking our foot off the gas,” said Mr. Bergen, whose family has overseen the business for over a century.
The Federal Reserve’s Concerns and Economic Implications
This caution is a major concern for the Federal Reserve, which faces an increasingly complex economic landscape with few precedents. The central bank is striving to better understand the economy as it considers whether to lower interest rates further amidst persistent inflation concerns. Businesses are reporting both rising prices and slower growth, impacts that have not yet fully manifested in economic data.
The Federal Reserve’s 12 regional presidents have always closely monitored businesses in their districts to gauge evolving economic conditions. This local outreach has gained new importance as the spectrum of potential outcomes has broadened significantly.
News
