Press Releases
Op-Ed: Agriculture Trade is Vital to Nebraska's Economy
Omaha, NE,
October 27, 2017
Tags:
Agriculture
Every other row of soybeans and every third row of corn in Nebraska is exported, and we are the largest exporter of beef in the country. Our ethanol exports are climbing. Agricultural trade is vital to Nebraska! Growing up and working on a farm, I know firsthand the work of farmers and the uncertainty they face every year when it comes to yields and prices. Thus, I fully appreciate the importance of having a strong market for our products. Now, as a member of the House Agriculture Committee, I work with a variety of agricultural sectors in Omaha and throughout the state of Nebraska. At every meeting, I have heard about the importance of trade to the agricultural economy. Nebraska’s agriculture industry is responsible for one out of every four jobs in the state. The North American Free Trade Act (NAFTA) and the South Korea-United States Trade Agreement (KORUS) have allowed Nebraska’s agricultural economy to thrive. According to the USDA, in 2015 Nebraska had nearly $23 billion in cash receipts from all farm and ranch commodities; $6.4 billion was from commodity exports. Nebraska leads the country in many sectors of production agriculture in 2016. It was the largest commercial producer of red meat and had the largest number of cattle on feed. In addition, Nebraska was the third largest producer of corn and the fourth largest producer of dry edible beans. Trade exports is a large driver of Nebraska’s high level of production. The top five export markets for Nebraska are China, Mexico, Japan, Canada, and member countries of the European Union. Out of those markets, Mexico and Canada represented nearly $1.4 billion in export value in 2015, and NAFTA plays a critical role in facilitating this level of trade. In 2015, Mexico was Nebraska’s largest export market for corn, dairy, sugar and sweeteners as well as the second largest export market for soybeans, wheat, sorghum, and distillers grains. Canada was Nebraska’s largest export market for ethanol and second largest export market for pork. The KORUS agreement has facilitated a strong trade relationship with South Korea as a significant export market for Nebraska agricultural commodities representing $393 million in value for 2015. According to studies conducted by the United States Department of Agriculture and Nebraska Department of Agriculture, every dollar received from agricultural exports also generates an additional $1.22 in economic activity across the supply chain. This means that Nebraska’s $6.4 billion in agriculture exports in 2015 resulted in $7.8 billion in additional economic activity for the state. This is a significant contribution to Omaha’s economy where transportation, food processing, and financing industries employ large numbers of people and are historically significant to the metro area. I support the President’s goal of updating and improving NAFTA and KORUS, but walking out of these treaties would be bad for America and Nebraska. NAFTA and KORUS have directly enabled Nebraska’s export market to flourish, contributing to our economic and job growth. Establishment of new markets and expansion of current markets must remain a priority as agriculture and associated sectors depend on this foreign consumption. I urge President Trump and his administration to update NAFTA and KORUS, but not walk away from them, as these trade agreements are vital to our economy. |