Nebraska Farm Bureau News – FEBRUARY 24, 2017 7
New Opportunities and Challenges with Trump Administration
From day one, President Donald J. Trump
has gotten to work, issuing a number of
executive orders from signing a memorandum
directing the United States to withdraw from
the Trans-Pacific Partnership (TPP), to his
executive orders on Obamacare and limiting
new federal regulations.
“Like any new administration, President
Trump has made some good and
questionable decisions during his first
two months in office,” said Jordan Dux,
Nebraska Farm Bureau’s national affairs
director Feb. 13. “We are very supportive of
Sonny Perdue of Georgia to head of the U.S.
Department of Agriculture. We also like
Scott Pruitt as head of the Environmental
Protection Agency (EPA). Pruitt has been
right in the thick of a lot of environmental
fights with us including WOTUS and
Greenhouse gas regulations,” Dux said.
Besides good decisions being made in
terms of the cabinet, President Trump has
also made reducing the regulatory burden
faced by farmers, ranchers, and business
owners a top tier priority.
“The new administration has made it
clear that WOTUS and greenhouse gas
regulations are in its cross hairs and we
support the Trump administration on that
front. We are hopeful that the administration
will work with Congress and pursue a
substantial overhaul of the entire federal
regulatory system. Repealing many of the
regulations we have opposed over the past
eight years is obviously great, but we also
need to work to stop federal agencies from
introducing many of these new regulations
in the first place,” Dux said.
Trade, however, remains a sticking point
between the new administration and the
majority of the agricultural community.
President Trump has made revising trade
deals an early priority, formally abandoning
the 12-nation Trans-Pacific Partnership
NAFTA’s Impact on Nebraska Agriculture
FARM EQUESTRIAN HOBBY COMMERCIAL
and he wants to renegotiate the North
American Free Trade Agreement, NAFTA.
“Trade is unbelievably important to
America’s farmers and ranchers, and
expanding markets is a key component of
any effort to try and raise commodity prices.
While not surprised, we were disappointed
in President Trump’s executive order to pull
the U.S. out of the Trans-Pacific Partnership.
The President has indicated that he intends
to pursue new bilateral trade deals, and we
certainly hope that negotiations on those
deals will begin quickly to help fill the void
left by the end of the TPP,” he said.
The future of existing trade deals also
remains uncertain with President Trump’s
continued pledge to renegotiate NAFTA.
The agreement, established between Canada,
Mexico, and the United States back in 1994,
has provided a substantial boost to farmers
and ranchers with agricultural trade between
the three countries increasing 233 percent
between 1992 and 2013. In 2015, Nebraska
alone exported ag products worth $1.467
billion to Canada and $1.261 billion to Mexico.
“We hope the President continues to try
and look at those opportunities and does
not damage the strong agreements we
already have with other trading partners.
Nebraska ships a lot of beef, pork, corn,
soybeans, and dried distillers to Mexico
and Canada and NAFTA has played a large
role in that. If the President does decide to
renegotiate NAFTA, agriculture must have a
seat at the table to see that our interests are
being protected,” Dux said.
The President and the new Congress
will have a multitude of other challenges
they will likely tackle that don’t have a
direct connection to agriculture. Issues such
as health care reform, tax code reform,
immigration reform, and development of
the 2018 farm bill will all also likely take
center stage in the upcoming months.
If the North American Free Trade Agreement (NAFTA) were to go away, it would impact Nebraska agriculture tremendously. How much corn, soybeans, beef, and pork does Nebraska export
to Mexico? What percent of our Nebraska market would be shut down if Mexico ag imports were shut down in retaliation? Jay Rempe, senior economist for Nebraska Farm Bureau, recently
analyzed these numbers to show putting an end to NAFTA or imposing import taxes on Mexico’s products would be detrimental to Nebraska’s agriculture economy. Below is the analysis.
1. Department of Commerce, International Trade Association:
• Canada and Mexico are Nebraska’s top two markets in terms of value of exports. In 2015,
Nebraska exported $1.467 billion of goods to Canada and $1.261 billion to Mexico.
• Processed foods and agricultural products are first and third respectively in Nebraska’s
top export categories. Machinery is second
• In 2015, exports to countries with free trade agreements accounted for 53 percent of
Nebraska exports. (NAFTA; Korea FTA; Australia; Central American FTA; and Israel)
• From 2005-15, exports from Nebraska to free trade agreement markets have grown
104 percent, with growth in NAFTA trade far outpacing that with other FTA countries.
2. USDA-Economic Research Service—“NAFTA at 20: North America’s
Free-Trade Area and Its Impact on Agriculture” (February, 2015)
• Between 1992 and 2013, the total value of agricultural trade between the three NAFTA
countries increased 233 percent on an inflation adjusted basis.
• Ag trade between the three NAFTA countries grew at a faster pace (7.9%) than ag trade
between the same three countries and the rest of the world (6.9%).
• U.S. Exports to Canada
º Percent change average annual volume exported metric tons between
1991-93 and 2011-13
Beef and Veal +94% Pork +2,075%
Corn +12% Soybeans +61%
• U.S. Exports to Mexico
º Percent change in average annual volume exported between 1991-93 and 2011-13
Beef and Veal +129% Pork +1,232%
Corn +762% Soybeans +327%
Wheat +475% Corn Syrup +6,781%
3. Miscellaneous Trade Facts on Mexico (USDA, Economic Research Service
and Foreign Ag Service)
• Mexico is the third largest purchaser of U.S. ag products, each year purchasing between
$17-20 billion of U.S. ag products.
• Mexico is U.S. agriculture’s:
º Largest purchaser of pork
º Second largest purchaser of corn
º Second largest purchaser of DDGs
(distillers dried grains)
º Third largest purchaser of soybeans
º Fourth largest purchaser of beef
º Sixth largest purchaser of corn
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