By NANCY VORIS
Indiana Correspondent WASHINGTON, D.C. — U.S. farm exports reached an all-time high of $75 billion during the first half of fiscal year 2011, according to reports released last week.
“Today’s trade data demonstrate that, once again, America’s farmers and ranchers are helping lead the way to recovery from the worst economic recession in decades,” said USDA Secretary Tom Vilsack. “At $75 billion, U.S. agricultural exports for fiscal year 2011 are 27 percent higher than the same period in last year. This puts us on track to reach the current USDA export forecast of $135.5 billion by the end of the year.”
He said the news was especially encouraging for those in rural America who earn a living in farming, ranching and agriculture-related industries, because exports alone will support more than one million jobs in the United States this year. Strong U.S. farm exports will be a key contributor to building an economy that continues to grow, innovate and out-compete the rest of the world.
China is the top U.S. export market, as expected, with $15.1 billion in farm exports and accounting for nearly 20 percent of all U.S. farm exports. Canada is the second-largest market.
Both the value and volume of exports rose in the first half of the year, with the volume of bulk shipments up 5 percent from last year. Wheat and cotton volumes were especially healthy, with increases of 64 percent 44 percent, respectively.
March was the highest-grossing month for U.S. agricultural exports ever, with farmers and ranchers exporting $13.3 billion worth of agricultural goods. That is $407 million more than the previous record set in November 2010.
“Congress can help U.S. farmers and ranchers sustain their record growth by moving expeditiously to pass the South Korea, Colombia and Panama trade agreements,” Vilsack said. “When fully implemented, those three agreements have potential to add more than $2 billion per year to our exports and support job creation here at home.”
He spoke before the House Agriculture Committee Thursday about the pending trade agreements. Again citing agriculture as a leader out of recession, he said agricultural exports to the three countries will yield more than $2.3 billion in sales and support more than 19,000 American jobs in agriculture and related industries.
“The Korea agreement is a trade opportunity we cannot afford to pass up – worth an expected $1.9 billion annually to ag producers,” Vilsack said. “Sixty percent of the items that we currently trade to Korea will be duty-free immediately, including corn, soybeans for crush, cotton, cherries and orange and grape juice.
“Other commodities – such as meat, poultry and dairy – will see tariffs and duties reduced over a period of time, creating tremendous opportunity for us to grow our export opportunities.”
In Colombia’s agreement, current tariffs on U.S. agricultural exports would be reduced on about 70 percent of current trade. When fully implemented, the agreement could be expected to increase agricultural exports by 44 percent, an additional $370 million per year.
In Panama, U.S. agricultural exports have been on the rise, to more than $450 million in 2010, and the agreement would add an additional $46 million when fully implemented. Tariffs on 68 percent of Panama’s agricultural tariff lines, accounting for more than half of current U.S. trade by value, would be eliminated by the agreement.
“Thanks to the President’s National Export Initiative, which challenged U.S. businesses to double all exports by the end of 2014, USDA is reaching out to producers and agribusinesses, especially small- and medium-sized enterprises, with information about how to tackle the export market and financing to make it happen,” Vilsack said.
“Whether it means helping small businesses attend trade shows, or directly connecting U.S. companies and trade groups with foreign customers by bringing them to the country, we are working to expand opportunities for agricultural trade.”
The latest export data are available online via the Global Agricultural Trade System at www.fas.usda.gov/data.asp |
