TPP could mean millions of dollars for Missouri agriculture

5 months 3 weeks 5 days ago October 28, 2016 Oct 28, 2016 Friday, October 28 2016 Friday, October 28, 2016 2:39:00 PM CDT in News
By: Nora Faris, KOMU 8 Reporter
loading

COLUMBIA - A foreign trade deal could send more of the Show-Me State’s soybeans to Singapore, more of its meat to Malaysia and more of the world’s money to Missouri farmers.

The Trans-Pacific Partnership, or TPP, is a comprehensive, multi-lateral free trade agreement between the U.S., Canada, Mexico and nine countries in the Asia-Pacific region.

Mike Deering, executive director of the Missouri Cattlemen’s Association, said the deal has far-reaching implications for Missouri’s farmers.

“TPP would open doors and limit tariff restrictions in key markets in the Pacific,” Deering said. “Most of agriculture’s customers live outside the U.S., so this expands our industry’s access to those global markets.”

Both Hillary Clinton and Donald Trump have expressed opposition to TPP, saying that the U.S. needs a stronger agreement that more aggressively bolsters the American manufacturing sector.

But Deering said, when it comes to trade deals, the U.S. can’t let perfect stand in the way of good.

“The candidates are correct in that agreements need to be better. They need to be more thoughtful,” Deering said. “The Missouri beef industry would love Japan to give us a 0 percent tariff, but in trade agreements, you usually can’t have the perfect deal on the first try.”

The agreement reduces or eliminates tariffs on some of Missouri’s key agricultural exports, including soybeans, pork and beef. The deal’s market expansion and free trade benefits could increase Missouri’s net agriculture exports by $105 million per year.

Congress hasn’t yet ratified the agreement, but several Missouri agriculture groups, including the Missouri Farm Bureau and Missouri Pork Association, have expressed support for the trade deal.

Farm incomes are expected to hit their lowest point since 2009 this year. The Rural Mainstreet Index, a monthly economic benchmark that measures the health of the farm economy, slumped to its lowest levels since April 2009 this month. According to the index, one in five grain farmers will experience negative cash flows this year. Some farmers are looking to TPP to boost falling farm incomes by providing additional outlets for farmers to market their commodities.

If the U.S. fails to ratify TPP, the country could lose market access and trade advantages across many industries, from agriculture to automobile manufacturing. The trade agreement won’t go into full effect without U.S. ratification, but other countries will likely move forward with bilateral trade deals if the U.S. fails to act. Delaying the ratification of TPP by even one year could cost the country as much as $94 billion in permanent lost income.

Agricultural exports currently support more than 30,000 Missouri jobs. In 2014, the U.S. Department of Agriculture estimated that every $1 billion generated by agricultural exports provided 7,550 American jobs.

Don Nikodim, executive director of the Missouri Pork Association, said Missouri agriculture needs TPP to keep up with its foreign competitors in the global agriculture industry.

“If the U.S. doesn't pass TPP, China is leading a coalition of other states to draft their own similar trade agreement," Nikodim said. "It's up to us to get engaged and get this agreement passed to ensure open trade and market access for U.S. farmers in the TPP countries."

Garrett Hawkins, national legislative programs director for Missouri Farm Bureau, said TPP could enhance the American sphere of influence in southeast Asia and the Pacific region, along with U.S. farmers' market share in expanding markets.

"We remind farmers and ranchers that every day that passes that we do not act on TPP is another day that we lose market share in critical countries, like Japan," Hawkins said. "But TPP doesn't just increase our market share in a region where we need to ramp up efforts. It also increases U.S. influence in a region of the world that could benefit from our leadership."

In order for TPP to take full effect, the U.S. must ratify the agreement before February 2018.

More News

Grid
List
COLUMBIA - Columbia Public School teachers could see a significant increase in salary for the coming school year. The... More >>
35 minutes ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 7:22:00 PM CDT in News
JEFFERSON CITY (AP) — A Missouri senator says he's moving out of a room he rents from a lobbyist following... More >>
40 minutes ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 7:17:23 PM CDT in News
JEFFERSON CITY (AP) — The Missouri House has passed stricter requirements for tracking fetal tissue after abortions. The... More >>
44 minutes ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 7:13:00 PM CDT in News
MID-MISSOURI - There were 36 reported cases of salmonella in Mid-Missouri Monday, with the majority of cases reported out of... More >>
53 minutes ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 7:04:00 PM CDT in News
COLUMBIA - Columbia Public Works is requesting community members complete a survey on new markings for cyclists at intersections in... More >>
1 hour ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 6:40:00 PM CDT in News
COLUMBIA - Wind, water and solar power are all elements that usually come to mind when the words 'renewable energy'... More >>
1 hour ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 6:02:00 PM CDT in News
COOPER COUNTY - Two people died during a plane crash on Highway 98 near Boonville around 1:40 p.m Monday. ... More >>
2 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 5:03:00 PM CDT in News
ARGYLE - For years, the Rock Island rail line carried trains across Missouri, straight through towns like Eldon, Freeburg and... More >>
4 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 3:50:00 PM CDT in News
KANSAS CITY (AP) — A teenager who was shot by a Kansas City store clerk who thought the boy was... More >>
4 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 3:39:00 PM CDT in News
BOONVILLE- What began as a joke between two friends inspired an event that raised money and awareness for a... More >>
5 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 2:49:00 PM CDT in Continuous News
BALLWIN, Mo. (AP) — St. Louis County authorities are investigating an apparent murder-suicide involving a couple in their 80s. ... More >>
5 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 2:35:00 PM CDT in News
ST. LOUIS (AP) — Police say a 51-year-old St. Louis-area woman died while she was sleeping when she was struck... More >>
5 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 2:29:00 PM CDT in News
EUREKA, Mo. (AP) — A Mexican wolf born this month at a wildlife center in suburban St. Louis is offering... More >>
5 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 2:17:00 PM CDT in News
COLUMBIA - The Boone County Community Services Department recently released its 2016 Annual Report and Program Directory, which highlights where... More >>
6 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 1:34:00 PM CDT in News
COLUMBIA - President Donald Trump's proposed spending plan for 2018 significantly reduces funding for a range of executive departments, from... More >>
7 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 12:13:00 PM CDT in News
FULTON - Two men are on the run after assaulting a man in his home and stealing cash and other... More >>
8 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 11:23:00 AM CDT in News
JEFFERSON CITY - Boone County and Jefferson City discussed an agreement to respond as backup for each other's 911 call... More >>
8 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 11:07:00 AM CDT in News
COLUMBIA - A new report shows that only about one in every 10 Americans eats enough fruits and vegetables. Just... More >>
8 hours ago April 24, 2017 Apr 24, 2017 Monday, April 24 2017 Monday, April 24, 2017 11:06:00 AM CDT in Weekly Wellness
Columbia, MO
Broken Clouds 74°
8pm 68°
9pm 65°
10pm 63°
11pm 61°

Select a station to view its upcoming schedule:

Coming Up Next

7:00p
The Voice
9:01p
Taken
10:00p
KOMU 8 News @ 10
7:00p
Supergirl
8:00p
Jane the Virgin
9:00p
KOMU 8 News @ Nine on The CW

Tonight's Schedule

7:00p
The Voice
9:01p
Taken
7:00p
Supergirl
8:00p
Jane the Virgin
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld