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Nebraska is one of the leading producers of agricultural products and a major
exporter. The State's farm cash receipts totaled $14.5 billion in 2007, and
Nebraska ranked fifth among all 50 States with agricultural exports estimated at
$4 billion. Agricultural exports help boost farm prices and income, while
supporting about 42,628 jobs both on the farm and off the farm in food
processing, transportation, and manufacturing. Exports are increasingly
important to Nebraska's agricultural and statewide economy. Measured as exports
divided by farm cash receipts, the State's reliance on agricultural exports was
27 percent in 2007.
Nebraska's top five agricultural exports in 2007 were:
feed grains and products -- $1.3 billion
soybeans and products -- $812 million
live animals and red meats -- $802 million
hides and skins -- $403 million
wheat and products -- $313 million
World demand for these products is increasing, but so is competition among
suppliers. If Nebraska's farmers, ranchers, and food processors are to compete
successfully in the 21st century, they need fair trade and more open
access to growing global markets.
How Trade Agreements Benefit Nebraska Agriculture
As one of the nation’s corn producers, Nebraska benefited under the NAFTA
when Mexico converted its import licensing system for corn to a transitional
tariff-rate quota that will remain in effect until 2008. Under this system, the
volume of U.S. corn exports to Mexico has risen over 42 percent since 1994,
reaching 120 million bushels valued at $585 million in 2002.
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.
As a soybean producer, Nebraska benefits under the Uruguay Round agreement as
South Korea reduced its tariffs on soybean oil by 14.5 percent from 1995 to
2004. Thus far, the tariff reduction has supported a threefold increase in
export volume. The Philippines reduced its tariffs on soybean meal from 10 to 3
percent during the same period. China’s accession to the WTO has helped to raise
our exports of soybeans to that country by over six fold from 1999 to 2004,
surpassing $2.4 billion this year.
Export Success Stories
The U.S. Grains Council, in collaboration with the Iowa Corn Promotion Board,
the Nebraska Corn Board and the National Corn Growers Association, held the
second International Biotechnology Information Conference Oct. 13-17, 2004. The
conference brought together 70 national and international policy makers from at
least 30 countries and international organizations for a first-hand look at the
U.S. grain handling system and for an interactive discussion on the costs and
benefits of agricultural biotechnology. Conference organizers successfully
conveyed the message that agricultural biotechnology can be used by smaller as
well as larger farming operations to offset input costs, protect the environment
and improve yields. Also, the conference demonstrated that labeling requirements
contribute to higher product costs due to segregation requirements for
production, storage, transportation, regulatory oversights and higher production
costs.