Agriculture Secretary Tom Vilsack and American Farm Bureau Federation President Zippy Duvall got together to discuss the benefit of the Trans-Pacific Partnership (TPP) for agriculture as AFBF released an economic analysis of the pending trade agreement. “Until today, we didn’t have a specific documented review or study of that benefit,” said Vilsack, said in thanking Farm Bureau for doing the analysis.According to the analysis, TPP will help level the playing field for U.S. agricultural exports to 11 nations across the Pacific Rim and boost annual net farm income in the United States by $4.4 billion, compared to not approving the pact. Vilsack notes that the agreement reduces “18,000 tariffs and taxes … many of those are in or for agricultural products” which increases demand for American exports such as meat, dairy, fruits, and grains.
“TPP will mean a boat-load of expanded exports and increased demand for America’s agricultural products,” Duvall said. “Clearly, America’s farmers and ranchers have much to gain from approval of TPP and we support its ratification. American agriculture is a growth industry, and to continue that trend, we must expand our market opportunities.”
AFBF’s analysis forecasts farm-price increases for corn (5 cents per bushel), soybeans (12 cents per bushel), wheat (2 cents per bushel) and rice (16 cents per hundredweight). While cotton prices are not projected to change, cash receipts are projected to increase by $21 million. AFBF also predicts price increases for beef ($2.66 per hundredweight), pork ($2.45 per hundredweight) and poultry ($1.40 per hundredweight). In the dairy sector, prices will increase for butter ($2.81 per hundredweight), cheese ($1.68 per hundredweight), nonfat dry milk ($1.29 per hundredweight) and all milk (21 cents per hundredweight).
While procedural steps along the way will take time, Duvall said “the sooner TPP is ratified, the better it will be for American agriculture.”
Listen to the press call here: USDA-AFBF on TPP Benefits to Ag