Connect with us

Personal Finance

Wait, does America suddenly have a record number of bees?

Published

on

Where in the unholy heck did all these bees come from?!

After almost two decades of relentless colony collapse coverage and years of grieving suspiciously clean windshields, we were stunned to run the numbers on the new Census of Agriculture (otherwise known as that wonderful time every five years where the government counts all the llamas): America’s honeybee population has rocketed to an all-time high.

We’ve added almost a million bee colonies in the past five years. We now have 3.8 million, the census shows. Since 2007, the first census after alarming bee die-offs began in 2006, the honeybee has been the fastest-growing livestock segment in the country! And that doesn’t count feral honeybees, which may outnumber their captive cousins several times over.

This prompted so many questions. Does this mean the insect apocalypse is over? Are pollinators saved? Did we unravel the web of maladies known as colony collapse disorder?

But let’s start with the most important question: Is there, in fact, a bee boom?

We consider the census from the National Agricultural Statistics Service (NASS) to be the gold standard, but another data set from those quantitative crusaders, the annual honey report, actually shows bee colonies losing ground.

Agriculture Department economist Stan Daberkow, who helped write the definitive comparison of these sources, retired in 2008 but continues to follow the beekeeping business closely. When we tracked him down, he dove headfirst into our data mystery, sending us theories and exchanging emails at 1:35 a.m. and beyond.

Like any source produced by humans and constrained by budgets, Daberkow said, the honey report and Census of Agriculture have their limitations. The honey report focuses on operations with five or more hives, while the census includes every farm in the country. In this case, “farm” means any plot of land that sells at least $1,000 of agriculture products in a year, a measure that could include more hobbyists and dabblers in the buzz biz.

Inflation also increases the share of beekeepers who qualify for the census: The Agriculture Department’s $1,000 farm definition hasn’t changed since 1975. So as honey prices, pollination fees, hive prices and other sources of bee revenue rise, more hobbyists will magically transmogrify into “farmers.” Some of those new farmers, plus others discovered through census outreach efforts, might get added to the honey report. So next year’s honey report could paint a sunnier picture.

Daberkow said he was somewhat “leery” of the latest census data. Given less-than-ideal recent honey prices, major producers shouldn’t have much incentive to expand their operations. “Any growth would likely have come in smaller operations, a demographic USDA goes to great lengths to track down for the census,” he said.

Sure enough, the census shows the number of operations with any bee colonies has ascended far faster than honey production or bee-colony counts — about 160 percent since 2007.

Much of the explosion of small producers came in just one state: Texas. The Lone Star State has gone from having the sixth-most bee operations in the country to being so far ahead of anyone else that it out-bees the bottom 21 states combined.

Our data showed the biggest increases in north Texas, a region not traditionally considered a honey hotbed. So we started dialing beekeepers to ask what was going on. The first thing we learned? Our job would be half as hard and twice as joyful if all our sources were Texas bee boosters. Every last one seemed genuinely thrilled to pick up the phone.

Consider John Talbert of Sabine Creek Honey Farm, age 85. A past president of both the Association for Facilities Engineering and the Texas Beekeepers Association, Talbert takes a spoonful of honey before bed each night and brings a jar of wildflower honey to every politician he meets. He does the same for his doctor and his dentist.

“That’s so small that it couldn’t be considered a bribe,” Talbert told us. “It’s just a gesture of good faith!”

Talbert is such an infectious evangelist, we suspect that he and his many protégés could have propelled the great American bee resurgence by enthusiasm alone. But the Texas beekeepers all pointed to one clear reason for the bee boom — and that reason answered the phone on our second try.

Dennis Herbert wouldn’t strike you as a political mover and shaker. A retired wildlife biologist, Herbert, 75, boasts of no fancy connections and drops no names. But in 2011, after keeping bees for a few years, he went to the Texas legislature and laid out a simple hypothetical.

“You own 200 acres on the other side of the fence from me, and you raise cotton for a living. You get your ag valuation and cheaper taxes on your property. I have 10 acres on the other side of the fence and raise bees, and I don’t receive my ag valuation. And yet my bees are flying across the fence and pollinating your crops and making a living for you,” Herbert said. “Well, I just never thought that quite fair.”

In 2012, the Herbert Hypothetical gave rise to a new law: Your plot of five to 20 acres now qualifies for agriculture tax breaks if you keep bees on it for five years.

Over the next few years, all 254 Texas counties adopted bee rules requiring, for example, six hives on five acres plus another hive for every 2.5 acres beyond that to qualify for the tax break. Herbert keeps a spreadsheet of the regulations and drives across the state to educate bee-curious landowners.

Herbert himself doesn’t qualify for the exemption. His modest homestead in the tiny town of Salado, about an hour north of Austin, isn’t big enough. But, he says, “more bees provide more pollination, and so I get to eat a little better. I get my watermelon during the summer. And that doesn’t make me anybody special at all. I just, I like my watermelon.”

While Herbert never intended it, Texas bee exemptions have become big business. That has created an opportunity for Gary Barber, a former newspaper photographer.

Barber got bit by the bee bug after he left the Dallas Morning News in 2014. His firm, Honey Bees Unlimited, now leases and runs 1,500 hives for 170 clients in eight counties north of the Dallas-Fort Worth metroplex. As developers split the once-rural countryside into five- and 10-acre ranchettes, he’s signing up new clients faster than he can split hives to place on their land.

“It’s crazy, the blanket of bees over these counties!” Barber said. “Honestly, it’s not bee country: You’re not going to make it like a traditional beekeeper. But it’s really great because … now we’ve got pollinators all around!”

Barber has risen to become vice president of the Texas Beekeepers Association and promotes the industry alongside Herbert — especially every other year when the Texas legislature is in session.

“There’s usually some legislator that wants to mess with [the tax break], and we’ve got to go tell them why it’s great,” Barber told us. “And luckily, while our two political parties don’t agree on much, they all seem to want to save bees.”

These Texans helped explain the rise in beekeeping operations. And they built our trust in the Census of Agriculture as a purveyor of weird truth. But even with its army of small producers, Texas still ranks only sixth in the number of actual bee colonies. To find the true core of the bee boom, we had to make like the Village People and go west.

When the census was taken in December 2022, California had more than four times as many bees as any other state. We emailed pollination expert Brittney Goodrich at the University of California at Davis, who explained that pollinating the California almond crop “demands most of the honeybee colonies in the U.S. each year.”

Every February and March, something like 170 million almond trees unite in one of Earth’s great synchronized acts of sexual reproduction — made possible by the migration of the bees.

Pollination — not honey prices — has been the true rocket booster strapped to the back of the modern beekeeping industry. And almond pollination is responsible for $4 of every $5 spent on bee fertility assistance in the United States, according to NASS.

America’s almond acreage has more than doubled since 2007 as the world’s food firms race to stuff the nut into every conceivable granola mix, nut butter and milk substitute. So it seems reasonable to assume the honeybee population doubled along with it. After all, those almonds aren’t pollinating themselves.

(Editor’s note: Some of those almonds are, in fact, pollinating themselves. But self-pollinating trees remain a small minority.)

So the situation on the ground seems to confirm the census: We probably do have a record number of honeybees.

Sadly, however, this does not mean we’ve defeated colony collapse. One major citizen-science project found that beekeepers lost almost half of their colonies in the year ending in April 2023, the second-highest loss rate on record.

For now, we’re making up for it with aggressive management. The Texans told us that they were splitting their hives more often, replacing queens as often as every year and churning out bee colonies faster than the mites, fungi and diseases can take them down.

But this may not be good news for bees in general.

“It is absolutely not a good thing for native pollinators,” said Eliza Grames, an entomologist at Binghamton University, who noted that domesticated honeybees are a threat to North America’s 4,000 native bee species, about 40 percent of which are vulnerable to extinction.

Grames helps lead EntoGEM, a collaborative effort to sift through more than 120,000 often-obscure scholarly articles worldwide in search of hidden insect-population data. Grames said the consensus holds that pollinators, like all insects, are in decline — losing probably 1 to 2 percent a year.

(“Pollinators” is not a synonym for “bees,” by the way. Legions of insects have evolved to help native plants with long-distance reproduction, including butterflies, moths, beetles, flies, midges and gnats. Many aren’t even fully known to science, so we can’t say with certainty they’re declining. But optimism would seem misplaced.)

Many of the same forces collapsing managed beehives also decimate their native cousins, only the natives don’t usually have entire industries and governments pouring hundreds of millions of dollars into supporting them. Grames compared the situation to birds, another sector in which maladies common in farmed animals, such as bird flu, threaten their wild cousins.

“You wouldn’t be like, ‘Hey, birds are doing great. We’ve got a huge biomass of chickens!’ It’s kind of the same thing with honeybees,” she said. “They’re domesticated. They’re essentially livestock.”

Mace Vaughan leads pollinator and agricultural biodiversity at Xerces, an insect-conservation outfit that has grown from five to nearly 80 employees during his 24 years there. Vaughan says it’s not a zero-sum game: For native pollinators to win, honeybees don’t have to lose. If we focus not on tax breaks, but on limiting the use of insecticide and promoting habitats such as meadows, hedgerows and wetlands, all pollinators can come out ahead.

“We’ve got really well-meaning people who are keeping honeybees because, ‘Oh, I’ve got to save the bees.’ That’s not the way you save the bees!” Vaughan told us. “The way you support both honeybees and beekeepers — and the way you save native pollinators — is to go out there and create beautiful flower-rich habitat on your farm or your garden.”

Howdy! The Department of Data seeks your quantitative queries. What are you curious about: Should we pay blood donors? When does spring really start? What’s the best time to get your flu shot? Just ask!

If your question inspires a column, we’ll send you an official Department of Data button and ID card. This week we owe one to ace news researcher Razzan Nakhlawi, who helped us track down several bee-data experts.

Continue Reading

Personal Finance

20 items and goods most exposed to price shocks

Published

on

Employees at a clothing factory in Vo Cuong, Bac Ninh province, in Vietnam.

SeongJoon Cho/Bloomberg via Getty Images

The Trump administration’s plan to slap steep tariffs on goods from dozens of countries is expected to spike prices for consumers. Some items, like leather goods, will see a bigger jump than others.

The overall impact on households will vary based on their purchasing habits. But most families — especially lower earners — are likely to feel the pain to some degree, economists said.

According to an analysis by the Budget Lab at Yale University, the average household will lose $3,800 of purchasing power per year as a result of all President Donald Trump‘s tariff policies — and retaliatory trade actions by other nations — announced as of Wednesday.

That’s a “meaningful amount,” said Ernie Tedeschi, the lab’s director of economics and former chief economist at the White House Council of Economic Advisers during the Biden administration.

The analysis doesn’t include the 34% retaliatory tariff China announced Friday on all U.S. exports, set to take effect April 10. The U.S. exported nearly $144 billion worth of goods to China in 2024, the third-largest market for U.S. goods behind Canada and Mexico, according to the Census Bureau.

Clothing prices poised to spike

The garment industry is among the most susceptible to tariff-related price shocks.

Prices for clothing and shoes, gloves and handbags, and wool and silk products will all increase by between 10% and 20% due to the tariffs Trump has so far imposed, according to the Yale Budget Lab analysis. Tedeschi noted that some of these price increases could take 5 years or more to unfold.

Srdjanpav | E+ | Getty Images

The bulk of apparel and shoes sold in the U.S. is manufactured in China, Vietnam, Sri Lanka and Bangladesh, said Denise Green, an associate professor at Cornell University and director of the Cornell Fashion + Textile Collection.

Under the “reciprocal tariffs” Trump announced Wednesday, Chinese imports will face a 34% duty. Goods from Vietnam, Sri Lanka and Bangladesh face tariffs of 46%, 44% and 37%, respectively.

Taking into account the pre-existing tariffs on China totaling 20%, Beijing now faces an effective tariff rate of at least 54%.

“The tariffs are disastrous for the apparel industry worldwide, but especially for smaller countries with highly specialized garment manufacturing,” Green said.

A lot of clothing production has moved overseas over the last 50 years, Tedeschi said, but it’s “very unlikely” clothing and textile manufacturing will return to the U.S. from Asia in the wake of the new tariffs.

“People will still import clothing to a large extent, and they’ll have to eat the price increase,” he said.

Car prices are another pain point

Various Mercedes-Benz vehicles assembled in the “Factory 56” production hall.

Picture Alliance | Picture Alliance | Getty Images

The duties announced Wednesday are on top of other tariffs Trump has imposed since his second inauguration, including duties on automobiles and car parts; copper, steel and aluminum; and certain imports from Canada and Mexico.

The cost of motor vehicles and car parts could swell by over 8% according to the Yale Budget Lab analysis.

Bank of America estimated that new vehicle prices could increase as much as $10,000 if automakers pass the full impact of tariffs on to consumers.

More from Personal Finance:
Economists say ‘value-added taxes’ aren’t a trade barrier
Tariffs are ‘lose-lose’ for U.S. jobs and industry
Why uncertainty makes the stock market go haywire

“Rising car prices are already a major pain point for the vast majority of Americans who live in an area where they need a car to get to work, school, their kids’ activities, and medical appointments,” said Erin Witte, director of consumer protection for the Consumer Federation of America.

“These tariffs will make it much worse, and will significantly reduce Americans’ choices about what car they want to buy,” she said.

Tariffs on specific commodities like aluminum and steel affect consumers indirectly, since the materials are used to manufacture a swath of consumer goods.

White House spokesman Kush Desai pushed back on analyses that prices will spike because of Trump’s tariff policy.

“Chicken Little ‘expert’ predictions didn’t quite pan out during President Trump’s first term, and they’re not going to pan out during his second term when President Trump again restores American Greatness from Main Street to Wall Street,” Desai said in an e-mailed statement.

Trump’s second-term tariffs are orders of magnitude larger than his first term, however.

The first Trump administration put tariffs on about $380 billion worth of goods in 2018 and 2019, according to the Tax Foundation. The tariffs so far imposed in Trump’s second term affect more than $2.5 trillion of U.S. imports, it said.

There’s also evidence that the first-term tariffs raised prices for some consumers.

Retail prices for the typical washing machine and clothing dryer rose by about 12% each — about $86 and $92 per unit, respectively — due to 2018 tariffs on imports of washing machines, according to a study by economists at the Federal Reserve Board and University of Chicago. The increased cost to consumers totaled $1.5 billion a year, the study found.

Tariffs are expected to raise the U.S. inflation rate

Economists also expect the overall U.S. inflation rate to jump due to tariffs.

American businesses that import goods from abroad will be the ones on the hook for paying the cost of tariffs, and economists anticipate that companies will pass at least some of those costs on to consumers.

The tariffs are disastrous for the apparel industry worldwide, but especially for smaller countries with highly specialized garment manufacturing.

Denise Green

director of the Cornell Fashion + Textile Collection

An environment of rising prices for foreign goods may give U.S. businesses cover to somewhat raise their prices, too.

As a result, the consumer price index could jump to 4.5% later in 2025, Capital Economics estimated Thursday. That’s up from 2.8% in February, and roughly double the Federal Reserve’s long-term inflation target.

Continue Reading

Personal Finance

What to know before trying to ‘buy the dip’ amid tariff sell-off

Published

on

Anchiy | E+ | Getty Images

As the stock market continues to fall, some investors are eager to “buy the dip,” or purchase assets at temporarily lower prices. Financial advisors, however, urge clients to stick with long-term investing plans amid the latest volatility.

U.S. stocks plunged on Thursday after President Donald Trump issued sweeping tariffs on more than 180 countries and territories. The sell-off continued Friday after China unveiled plans to impose a 34% retaliatory tariff on all goods imported from the U.S.

As of Friday afternoon, the Dow Jones Industrial Average was down more than 1,700 points following a 1,679.39 drop on Thursday. Meanwhile, the S&P 500 was off 4.8% after losing 4.84% the previous day. The tech-heavy Nasdaq Composite slid by 4.9% after plummeting 5.97% on Thursday.

More from Personal Finance:
‘You’re running out of time’ to claim an IRS stimulus check, tax expert says
Disability advocates sue Social Security and DOGE to stop service cuts
Jean Chatzky: Amid tariff turmoil, ‘you do not want to time the market’

If you’re looking for buying opportunities while assets are down, here are some things to consider, according to financial advisors.

Timing the market is ‘impossible’

When asset values fall, there’s often chatter in online communities like Reddit about whether to “buy the dip.” Typically, investors aim to buy at a discount and expect an eventual recovery, which could lead to future gains.

While buying cheaper investments isn’t a bad idea, the strategy can be tricky to execute since, of course, no one can predict stock market moves, experts say. 

“We never recommend timing the market, mostly because it is impossible to do without simply getting lucky,” said certified financial planner Eric Roberge, CEO of Beyond Your Hammock in Boston.  

Instead, you should “stick to a thoughtful, rules-based investment strategy designed to get you through to your long-term goals,” he said. 

Keep a ‘disciplined approach’

Investing in uncertain times: Here's what investors should know

Continue Reading

Personal Finance

As college costs soar, Ivy Leagues boost financial aid packages

Published

on

Fstop123 | E+ | Getty Images

While most people agree that a college education is worthwhile, fewer say it’s worth the high cost.

However, as college costs continue to rise, many top schools are responding by offering more generous financial aid packages to ensure affordability for qualified students, with some even covering the entire cost for low-income families. 

College tuition has surged by 5.6% a year, on average, since 1983, significantly outpacing other household expenses, a recent study by J.P. Morgan Asset Management found.

For the 2024-25 school year, tuition and fees plus room and board for a four-year private college averaged $58,600, up from $56,390 a year earlier. At four-year, in-state public colleges, it was $24,920, up from $24,080, according to the College Board.

Despite the rising costs, financial aid has not kept pace: Families now shoulder 48% of college expenses with their income and investments, up from 38% a decade ago, J.P. Morgan Asset Management also found.

The new, simplified Free Application for Federal Student Aid form, which first launched in 2023, was meant to improve access by expanding Pell Grant eligibility to provide more financial support to low- and middle-income families.

But even Pell Grants have not kept up with the rising cost of a four-year degree. Currently, the maximum Pell Grant award is $7,395, after notching a $500 increase in the 2023-34 academic year.

“Aid continues to not be enough and that’s the reality,” said Tricia Scarlata, head of education savings at J.P. Morgan Asset Management.

Taking on too much debt was also the No. 1 worry among college-bound students, according to a recent survey by The Princeton Review.

More from Personal Finance:
How to maximize your college financial aid offer
College hopefuls have a new ultimate dream school
$2.7 billion Pell Grant shortfall poses a threat for college aid

Top colleges expand financial aid awards

This also comes amid President Donald Trump’s plans to dismantle the U.S. Department of Education and transfer the country’s $1.6 trillion student loan portfolio to the Small Business Administration.

“While the federal student loan program is in a state of flux, a lot of students are getting money directly from colleges,” said Eric Greenberg, president of Greenberg Educational Group, a New York-based consulting firm.

Education as a state responsibility: Breaking down President Trump's executive order

To bridge the affordability gap, some of the nation’s top institutions are boosting their financial aid awards to attract top students wary of sky-high college tab.

“There’s a trend of colleges with money using it as opposed to sitting on it,” Greenberg said.

Harvard University was the latest school to announce that it will be tuition free for undergraduates with family incomes of up to $200,000 beginning in the 2025-26 academic year. 

Nearly two dozen more schools have also introduced “no-loan” policies, which means student loans are eliminated altogether from their financial aid packages.

Acceptance rates hit all-time lows

Schools with the financial wherewithal to expand their no-loan aid programs are giving students a tremendous benefit, Scarlata said. “I think it’s wonderful — you still have to get into Harvard though.”

Coming out of the pandemic, highly selective colleges and universities experienced a record-breaking increase in applications, according to a report by the Common Application.

Now the acceptance rates at Ivy League schools are near rock bottom. Harvard’s acceptance rate is just under 4%, down from more than 10% two decades ago; at Princeton and Yale, it’s about 5%, down from 12% and 10%, respectively.

“The arms race for financial aid is setting up an extreme crescendo for college admissions,” said Jamie Beaton, co-founder and CEO of Crimson Education, a college consulting firm. 

More generous aid packages and tuition-free policies remove the most significant financial barrier to higher education and attract even more applicants, he said — at schools that were already among the most difficult to get into.

“There’s a massive incentive to try to gain admission to top schools,” Beaton said. “The acceptance rate has halved. And it likely will again.”

Subscribe to CNBC on YouTube.

Continue Reading

Trending