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Idaho produces agricultural products that are exported worldwide. In fiscal
year 2007, the State's total cash receipts from farming reached $5.7 billion,
and exports were estimated at $1.2 billion. These exports help boost farm prices
and income, while supporting jobs both on the farm and off the farm in food
processing, storage, and transportation. These exports helped boost farm prices
and income, while supporting about 12,788 jobs both on the farm and off the farm
in food processing, storage, and transportation. The State’s reliance on
agricultural exports was 21 percent in 2007.
Idaho's top agricultural exports in fiscal year 2007 were:
- vegetables -- $362 million
- wheat and products -- $268 million
- dairy products -- $147 million
- feeds and fodders -- $88 million
World demand for agricultural, fish and wood products is increasing, but so
is competition among suppliers. If Idaho's industries are to compete
successfully for export opportunities in the 21st century, they need fair
trade and more open access to growing global markets.
How Trade Agreements Benefit Idaho Agriculture
The nation=s leading potato
producer, Idaho benefits under the North American Free Trade Agreement as Mexico
phases out its in-quota tariff rate on frozen potatoes (initially at 15 percent
in 1993) by 2003. At the same time, a special safeguard tariff-rate quota of
1,800 tons will grow at a compound annual rate of 3 percent. These changes
support U.S. potato fry exports to that Mexico, which jumped from $9.6 million
in 1994 to $35 million in 2002. Frozen potato fry sales to Japan increased 23
percent to $152 million over this period. As for Korea, U.S. frozen potato fry
exports to that country rose 47 percent to $22 million during the same period.
Idaho, a large wheat producer, benefited from limits set on subsidized wheat
exports as a result of the Uruguay Round agreement. These limits influenced the
European Union's decision to change its Common Agricultural Policy, ultimately
lowering internal EU market prices to world price levels. Annual EU wheat
exports dropped from 22 million tons to about 14 million tons as lower market
prices stimulated domestic use. Meanwhile, annual EU wheat imports jumped from
1.5 million tons to 7 million tons as the levied margin of protection fell. This
translates to an 11-percent reduction in global export competition and a
5.5-million-ton increase in EU wheat imports, a third of which is supplied by
the United States.
Under the U.S.-Central America-Dominican Republic Free Trade Agreement (CAFTA-DR),
U.S. prime and choice cuts of beef gain preferential access as applied tariffs
of 15 to 30 percent are immediately eliminated (except the Dominican Republic)
while those applied to other cuts are phased-out over 15 years. Tariffs on beef
offal and other beef products are phased out over 5 to 10 years. As part of the
agreement, all six countries are working toward the recognition of the U.S. meat
inspection and certification systems, which would replace the existing policy of
plant-by-plant inspections and approval. From 2001 through 2003, U.S. suppliers
annually shipped on average 4,094 metric tons valued at $9.8 million to all six
countries combined.
Export Success Stories
Idaho and Washington worked together to bring a reverse buying mission to
their states from Taiwan. Buyers and importers were introduced to retail items,
shelf-stable food products, food service items and western U.S. produce,
especially fresh fruits. Innumerable products were introduced created
incremental sales of over $5 million. A number of food ingredients and service
items have high potentials for the deli sections, which many Taiwanese
supermarkets are adding.